(Solved): 5. Calculating inflation using a simple price index Consider a fictional price index, the Universit ...

5. Calculating inflation using a simple price index Consider a fictional price index, the University Student Price Index (USPI), based on a typical university student's annual purchases. Suppose the following table shows information on the market basket for the USPI and the prices of each of the g00ds in 2020, 2021, and 2022. The cost of each item in the basket and the total cost of the basket are shown for 2020 . Perform these same calculations for 2021 and 2022, and enter the results in the following table. Suppose the base year for this price index is 2020. In the fast row of the table, calculate and enter the value of the USPI for the remaining years. Between 2020 and 2021 , the USPI increased by . Between 2021 and 2022, the USPI increased by Which of the following, if true, would illustrate why price indexes such as the USPI might overstate or exaggerate inflation in the cost of going to university? Check all that apply. Professors required each student to buy eight textbooks, regardless of the price. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers. Energy drinks became increasingly popular on university campuses between 2020 and 2022 due to significant improvements in flavour. A new mobile device for personal computing became available for purchase. A large percentage of students now buy their textbooks online, while the USPI uses data from university bookstores that increase the prices of textbooks by a larger percentage per year than online retailers.