The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 200 gallons of gasoline, 60 pizzas, 45 6-packs of beer, and 3 textbooks. Basket of College-Related Goods Basket of Goods Price Base Year (dollars) Price Last Year (dollars) Gasoline (per gallon) $ 1.90 $ 2.50 Pizza (per pizza) 4.50 7.95 Beer (per 6-pack) 4.20 7.00 Textbook (per book) 100.00 233.00 Instructions: Round your answers to two decimal places. a. Using the values above, what is the rate of inflation between the base year and last year? % b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $100 per textbook. What is the rate of inflation between the base year and last year now? %
