using 2009 as the base year, compute an inflation rate for 2010. My professor sa
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using 2009 as the base year, compute an inflation rate for 2010. My professor said the answer I wrote is wrong, so what’s the correct answer?? 3. The economy of Tuland produces only two products books and watches. The following ars 2009, information is available for production and prices of Tuland's products for the ye 2010, and 2011. chan Quantity of books Quantity of watches Price of books Price of watches 2009 12 40 $8 $30 2010 2011 13 15 50 55 S9 $10 S31 $35 Using 2009 as the base year, compute an inflation rate for 2010. (16)(16 (1 (is50) 10067-191 aa%Explanation / Answer
value of 2009 basket at 2009 prices=12*8+40*30
=1296
value of 2009 basket at 2010 prices=12*9+40*31
=1348
inflation rate 2010 is=(1348/1296)-1
=4.01%
the above is answer..
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