2. Economics
3. fix the basket at 3 footballs and 4 basketballs find...

# Question: fix the basket at 3 footballs and 4 basketballs find...

###### Question details

Fix the basket at 3 footballs and 4 basketballs.

Find the prices: SHOW ALL WORK.

 Year Price of Footballs Price of Basketballs 1 $10$12 2 $12$15 3 $14$18
1. Compute the Cost of the Basket

The cost in Year 1 =

The cost in Year 2 =

The cost in Year 3 =

2. Using Year 1 as the base year, compute the CPI for each year

CPI in Year 1 =

CPI in Year 2 =

CPI in Year 3 =

3. Using CPI, compute the inflation rate

Inflation Rate for Year 2 =

Inflation Rate for Year 3 =

4. Someone graduated from school and took his first job in 1982, which paid a salary of \$15,000.

CPI in 1982 = 96.5 CPI in 2012 = 229.5 What is his salary in 2012 dollars? SHOW ALL WORK.