Subject: Eonomics / General Economics
3.Suppose the price of hotdogs in years 1, 2, and 3 is $1, $2, and $3. The price of veggie burgers is $2, $3, and $4 for those years. The basket of goods is 4 hot dogs and 2 veggie burgers. Compute the cost of the basket for the first year.4.For the data in the previous question, compute the cost of the basket for the third year.5.For the same data, what is the CPI in year 3 using year 1 as the base?