Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 10

Subscribing to the theory that life is indeed a beach, the residents of La Playa spend all of their money on three things: Every year, they collectively buy 250 bathing suits, 600 tubes of sunscreen, and 450 beach towels. Using the data in Table 8P-1 , calculate the following.
a. The total cost of this basket each year from 2006 through 2009.
b. How much the price of this basket has changed from year to year in percentage terms.