Use the following information to answer the following questions.
In the country of Shem, the CPI is calculated using a market basket consisting of 5 apples, 4 loaves of bread, 3 robes, and 2 litres of gasoline. The per-unit prices of these goods have been as follows:
Table 6-3

-Refer to Table 6-3. What was the inflation rate, as measured by the CPI, between 2008 and 2009?

Question

Use the following information to answer the following questions.
In the country of Shem, the CPI is calculated using a market basket consisting of 5 apples, 4 loaves of bread, 3 robes, and 2 litres of gasoline. The per-unit prices of these goods have been as follows:
Table 6-3
 
-Refer to Table 6-3. What was the inflation rate, as measured by the CPI, between 2008 and 2009?

Quizplus · Accepted Answer

To calculate the inflation rate between 2008 and 2009, we need to compare the CPI for those years. 
In 2008, the CPI was (5 x 1) + (4 x 2) + (3 x 10) + (2 x 5) = 57
In 2009, the CPI was (5 x 2) + (4 x 3) + (3 x 15) + (2 x 10) = 93
Using the formula [(new CPI - old CPI) / old CPI] x 100%, we get:
[(93 - 57) / 57] x 100% = 36.8%
Therefore, the inflation rate, as measured by the CPI, between 2008 and 2009 was 34.2% (rounded to one decimal place). 
The correct answer is B.

Use the Following Information to Answer the Following Questions