Given a scenario where the CPI has increased by 15% over the last year, synthesize the potential impacts on consumer behavior and business strategies.

Why is it important to understand the components of the basket of goods used in CPI calculations?

How is the typical basket of goods for CPI calculations determined?

If the cost of a basket in 2023 is \$2500 and in the base year 2020 is \$2000, what is the CPI for 2023?

If the CPI increases significantly over a short period, what can be inferred about the economy?

Why is the base year important in CPI calculations?

What does a steady increase in CPI over several years indicate about the economy?

If the cost of a basket in 2025 is \$3000 and in the base year 2020 is \$2500, what is the CPI for 2025?

What does the percentage change formula 'new minus old divided by old' represent in the context of inflation?

How does the percentage change formula help in understanding inflation?