Ed is single with no dependents. He has receipts for the expenses listed below that he paid in 2019. His AGI is $60,000. What ar
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Answer:
10%
Explanation:
Price of One Unit of Good= Total Spending ÷ Total Quantity
In 2016,
They spend a total of $250 for 100 heads of cauliflower
Price of One Unit of Cauliflower=250÷100=$2.50 per unit
$100 for 50 bunches of broccoli,
Price of One Unit of Brocolli =100÷50=$2 per unit
$250 for 500 carrots
Price of One Unit of carrot =250÷500=$0.50 per unit
In 2017,
They spend a total of $210 for 60 heads of cauliflower
Price of One Unit of Cauliflower=210÷60=$3.50 per unit
$180 for 90 bunches of broccoli,
Price of One Unit of Brocolli =180÷90=$2 per unit
$270 for 450 carrots
Price of One Unit of carrot =270÷450=$0.60 per unit
Using 2016 as the base year, the CPI for 2016 is 100,
Therefore the CPI for 2017:
Therefore the inflation rate in 2017 using the CPI is:
Inflation rate = = 10%.