c) Do the price indexes you found in parts (a) and (b) imply an increase in Tom’s cost of living over time? If not, by how much do they differ?c) No, the indexes found in (a) and (b) do not imply the same percentage increases in Tom’s cost-of-living over time. If 2004 is treated as the base year, then the percentage change in the cost-of-living from 2004 to 2007 was 11.8%. If 2005 was treated as the base year, then the percentage change increase was 10.5%. Finally, for base year 2006, the percentage change increase was 9.72%. So between the different base years they differed by a matter of about 2.8%.