Table 24-1
The following table pertains to Quicheland, an economy in which the typical consumer's basket consists of 15 bushels of apples and 7 bushels of almond .

$$\begin{array} { | l | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Price of Apples } \
\text { (Dollarsp er bushel) }
\end{array} & \begin{array} { c }
\text { Price of Almond } \
\text { (Dollars per bushel) }
\end{array} \
\hline \text { Year 1 } & 12 & 4 \
\hline \text { Year } 2 & 7 & 11 \
\hline
\end{array}$$
-Refer to Table 24-1. If Year 1 is the base year, then the CPI for Year 1 was
A)79.42.
B)100.00.
C)90.01.
D)110.40.

Question

Table 24-1
The following table pertains to Quicheland, an economy in which the typical consumer's basket consists of 15 bushels of apples and 7 bushels of almond .
​
​
 $$\begin{array} { | l | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of Apples } \
\text { (Dollarsp er bushel) }
\end{array} & \begin{array} { c } 
\text { Price of Almond } \
\text { (Dollars per bushel) }
\end{array} \
\hline \text { Year 1 } & 12 & 4 \
\hline \text { Year } 2 & 7 & 11 \
\hline
\end{array}$$ ​
-Refer to Table 24-1. If Year 1 is the base year, then the CPI for Year 1 was
A)79.42.
B)100.00.
C)90.01.
D)110.40.

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for the base year is always 100. This is because the CPI measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households, and in the base year, the index is set to 100 to serve as a benchmark for comparing other years.

Table 24-1 the Following Table Pertains to Quicheland, an Economy

Table 24-1
the Following Table Pertains to Quicheland, an Economy