To find the inflation rate from 2016 to 2017 for the country of Caspir, we need to compare the total cost of goods (cereal and milk) for both years. We'll use the given prices and quantities for 2016 and 2017 and follow these steps:
1. Calculate the total value of goods in 2016:
- Price of cereal in 2016 = [tex]$4.00
- Quantity of cereal in 2016 = 120 boxes
- Price of milk in 2016 = $[/tex]2.00
- Quantity of milk in 2016 = 200 gallons
Total value of goods in 2016:
[tex]\[
\text{Total Value}_{2016} = (\text{Price of cereal}_{2016} \times \text{Quantity of cereal}_{2016}) + (\text{Price of milk}_{2016} \times \text{Quantity of milk}_{2016})
\][/tex]
[tex]\[
\text{Total Value}_{2016} = (4.00 \times 120) + (2.00 \times 200)
\][/tex]
[tex]\[
\text{Total Value}_{2016} = 480 + 400 = 880 \text{ dollars}
\][/tex]
2. Calculate the total value of goods in 2017:
- Price of cereal in 2017 = [tex]$5.00
- Quantity of cereal in 2017 = 150 boxes
- Price of milk in 2017 = $[/tex]2.50
- Quantity of milk in 2017 = 200 gallons
Total value of goods in 2017:
[tex]\[
\text{Total Value}_{2017} = (\text{Price of cereal}_{2017} \times \text{Quantity of cereal}_{2017}) + (\text{Price of milk}_{2017} \times \text{Quantity of milk}_{2017})
\][/tex]
[tex]\[
\text{Total Value}_{2017} = (5.00 \times 150) + (2.50 \times 200)
\][/tex]
[tex]\[
\text{Total Value}_{2017} = 750 + 500 = 1250 \text{ dollars}
\][/tex]
3. Calculate the inflation rate from 2016 to 2017:
The inflation rate can be found using the formula:
[tex]\[
\text{Inflation Rate} = \left( \frac{\text{Total Value}_{2017} - \text{Total Value}_{2016}}{\text{Total Value}_{2016}} \right) \times 100
\][/tex]
Substituting the values, we get:
[tex]\[
\text{Inflation Rate} = \left( \frac{1250 - 880}{880} \right) \times 100
\][/tex]
[tex]\[
\text{Inflation Rate} = \left( \frac{370}{880} \right) \times 100
\][/tex]
[tex]\[
\text{Inflation Rate} \approx 42.05\%
\][/tex]
Therefore, the country's inflation rate from 2016 to 2017 was approximately [tex]\(42.05\%\)[/tex].
