2009 Question 21 (1 Viewer)

[oyuck]

I'm probably a doofus but I can't see the answer for

2009 HSC Question 21 (a)

The answer is FOOD. But shouldn't it be Housing??

Can someone please explain? Thanks!!!
Link: http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2009exams/pdf_doc/2009-hsc-economics.pdf

 

[Stalker Ninja]

You have to take into account 'CPI by expenditure group'
ie. something along the lines of ...

Food --> (120-100) (base CPI) x 0.15 (weighting factor) = 3
Housing --> (110-100) x 0.2 = 2
Health --> (150-100) x 0.05 = 2.5

Therefore Food contributes most to inflation

 

[oyuck]

Thank you so much!