Suppose the Basket of Goods That You Purchase in 2019

Short Answer

Suppose the basket of goods that you purchase in 2019 consists of five textbooks, three jackets, one pair of winter boots, and four pairs of socks. In 2019, each textbook was $105, each jacket was $75, the pair of winter boots was $90, and each pair of socks was $3. Now suppose in 2020, you purchase the same basket: each textbook costs $97.50, each jacket costs $79, the pair of winter boots is $90, and each pair of socks is $2.50.
(a) What is the cost of the basket in 2019?
(b) What is the cost of the basket in 2020?
(c) What is the rate of inflation or deflation during in 2020?