Table 13-13 -Refer to Table 13-13

Table 13-13
$\begin{array}{|l|c|c|c|c|}\hline \text { Product } & \text { Quantity } & \begin{array}{c}\text { Base Year } \\\text { Price (2001) }\end{array} & \text { Price(2017) } & \text { Price (2018) } \\\hline \text { Tacos } & 5 & \$ 1.50 & \$ 2.00 & \$ 2.25 \\\hline \text { Earplugs } & 10 & 6.00 & 7.50 & 7.00 \\\hline \text { Toothbrushes } & 3 & 2.50 & 3.50 & 3.50 \\\hline\end{array}$
-Refer to Table 13-13.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2018,as measured by the consumer price index.

Correct Answer:

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Total expenditures for 2001 = (5 × $1.50...

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