1. 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 tableStreaming servicesIced coffeesTextbooksNotebooksEnergy drinksTotal costPrice indexQuantity in Basket115010840Suppose this price Index uses 2020 as the base year2020Price(Dollars)6428023Between 2020 and 2021, the UPI increased byCost(Dollars)64300800161201.300100Price(Dollars)104285242021In the last row of the cable, calculate and enter the value of the UPI for the remaining yearsCost(Dollars)PriceCost(Dollars) (Dollars)1342105452022Between 2021 and 2022, the UPI increased by MENWhich 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.

CPI is used as a tool to measure the cost of living and is widely used by governments, businesses,…

Perform these same calculations for 2021 and 2022, and enter the results in the following table Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Price Cost Price Quantity in Basket (Dollars) (Dollars) (Dollars) 1 641 64 104 150 2 300 2 10 800 85 8 16 40 120 Suppose this price index uses 2020 as the base year 80 2020 2 3 1.300 100 2021 In the last row of the cable, calculate and enter the value of the UPI for the remaining years Cost (Dollars) Between 2021 and 2022 the UPI increased by Price (Dollars) 134 2 105 4 5 2022 Cost (Dollars) Between 2020 and 2021, the UPI increased by Which of the following, if true would lustrate why price indexes such as the UPI might overstate inflation in the cost of going to college? Check all that apply