Year Price of Tennis Balls Quantity of Tennis Balls Price of Golf Balls Quantity of Golf...

Year	Price of Tennis Balls	Quantity of Tennis Balls	Price of Golf Balls	Quantity of Golf Balls	Price of Gatorade	Quantity of Gatorade
2014	$2	100	$4	100	$1	200
2015	$2	100	$6	100	$2	200

Suppose that people consume only three goods, as shown in this table:

What is the percentage change in the price of each of the three goods?
Using the consumer price index, compute the percentage change in the overall price level.
If you were to learn that a bottle of Gatorade increased in size from 2014 to 2015, should that information affect your calculation of the inflation rate? If so, how?
If you were to learn that Gatorade introduced new flavors in 2015, should that information affect your calculation of the inflation rate? If so, how?

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Rahul Sunny answered 1 year ago

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