Eastland college | Management homework help

Eastland College is concerned about the rising price of textbooks

that students must purchase. To better identify the increase

in the price of textbooks, the dean asks you, the

Economics Department’s star student, to create an index of

textbook prices. The average student purchases three English,

two math, and four economics textbooks. The prices of these

books are given in the accompanying table.

a. Create the price index for these books for all years with a

base year of 2002.

HDI Real GDP per capita

Brazil 0.775 $7,770

Canada 0.943 29,480

Japan 0.938 26,940

Mexico 0.802 8,970

Saudi Arabia 0.768 12,650

United States 0.939 35,750

2002 2003 2004

English textbook $50 $55 $57

Math textbook 70 72 74

Economics textbook 80 90 100

b. What is the percent change in the price of an English textbook

from 2002 to 2004?

c. What is the percent change in the price of a math textbook

from 2002 to 2004?

d. What is the percent change in the price of an economics

textbook from 2002 to 2004?

e. What is the percent change in the market index from 2002

to 2004? 

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