Answer to Question #182340 in Economics for Nusrat Fatima

Question

The quantity of goods and prices in each year are given

Chicken tomato Park Ticket
2001 Price Rs.80 Rs.24 Rs. 5.00
2001 Quantity 40 1 4


Now, 20 years later, we have new prices:
2021 Chicken tomato Park Ticket
Rs 120 Rs 40 Rs 12

Find out the inflation rate from 2001 to 2021 with the (hint CPI measurement)

Answer 1

2001:

$$80\times40+24\times1+5\times4=3244$$

2021:

$$120\times40+40\times1+12\times4=4888$$

$$CPI=\frac{4888}{3244}=1.507$$