The city of King’s Landing produces three goods which are included in the fixed basket of the C… 1 answer below »

The city of King’s Landing produces three goods which are included in the fixed basket of the CPI. The prices and quantities are given in the following table:

Year

Price

Quantity

Fish

298 AC

$10.50/lb.

75,000 lbs.

299 AC

$8.75

75,000

Beer

298 AC

$3.25/pint

152,500 pints

299 AC

$5.00

152,500

Clothing

298 AC

$15.50/shirt

28,750 shirts

299 AC

$16.10

28,750

Calculate the CPI for 298 AC and 299 AC using 298 AC as the base period.

What was the inflation rate between 298 AC and 299 AC?

 

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