Scenario: A typical resident of the country of Univertopia consumes a simple basket of goods consisting of soda, pizza, and Frisbees. The base year's basket contains 500 sodas, 200 pizzas, and 40 Frisbees. The prices of these goods over 8 years are given in the table.

-Refer to the scenario above.Using 2014 as the base year,which of the following is not true?
A) The Consumer Price Index in 2011 is higher than in 2012.
B) The Consumer Price Index in 2012 is lower than in 2011.
C) The Consumer Price Index in 2014 is higher than in 2013.
D) The Consumer Price Index in 2016 is higher than in 2015.

Question

Scenario: A typical resident of the country of Univertopia consumes a simple basket of goods consisting of soda, pizza, and Frisbees. The base year's basket contains 500 sodas, 200 pizzas, and 40 Frisbees. The prices of these goods over 8 years are given in the table.
 
-Refer to the scenario above.Using 2014 as the base year,which of the following is not true?
A) The Consumer Price Index in 2011 is higher than in 2012. 
B) The Consumer Price Index in 2012 is lower than in 2011. 
C) The Consumer Price Index in 2014 is higher than in 2013. 
D) The Consumer Price Index in 2016 is higher than in 2015.

Quizplus · Accepted Answer

Since 2014 is the base year, its Consumer Price Index (CPI) would be set at a standard value (often 100), making it impossible for the CPI in 2014 to be higher than in any other year, including 2013. The CPI of a base year compared to itself is always constant.

Scenario: a Typical Resident of the Country of Univertopia Consumes