Please answer all parts 6. Calculating inflation using a simple price indexConsider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute.The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022.The cost of each good in the basket as well as the basket's total cost are given for 2020.Perform these same calculations for 2021 and 2022, and enter the results in the following table.Streaming servicesIced coffeesTextbooksNotebooksEnergy drinksTotal costPrice indexQuantity in Basket115010840Suppose this price index uses 2020 as the base year.Price(Dollars)642Between 2020 and 2021, the UPI increased by80220203Cost(Dollars)64300800161201,300100Price(Dollars)104285242021Cost(Dollars)In the last row of the table, calculate and enter the value of the UPI for the remaining years.% Between 2021 and 2022, the UPI increased byPrice(Dollars)134210545962022Cost(Dollars) Perform these same calculations for 2021 and 2022, and enter the results in the following table.Streaming servicesIced coffeesTextbooksNotebooksEnergy drinksTotal costPrice indexQuantity in Basket115010840Suppose this price index uses 2020 as the base year.PriceCostPrice(Dollars) (Dollars) (Dollars)64641042Between 2020 and 2021, the UPI increased by80202023300800161201,300100285242021Cost(Dollars)In the last row of the table, calculate and enter the value of the UPI for the remaining years.Between 2021 and 2022, the UPI increased byPrice(Dollars)134210545%2022Cost(Dollars)Which of the following, if true, would illustrate why price indexes such as the UPI might overstate inflation in the cost of going to college? Check allthat apply.The quality of content provided by streaming services improved dramatically from 2020 to 2022. Many companies invested heavily in theactors cast for their original series, but this quality change is hard to measure.O Professors required each student to buy eight notebooks, regardless of the price.As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all,instead using the copies on reserve in the library.A natural dietary supplement is developed that is clinically proven to safely boost memory.

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A price index is a statistical measure that tracks changes in the average prices of a basket of…