-Refer to Table 6-5. Using 2018 as the base year, what is the consumer price index in 2017?

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for a given year is calculated by taking the price of the market basket in that year, dividing it by the price of the market basket in the base year, and then multiplying by 100. Given 2018 as the base year, to find the CPI for 2017, you would take the price of the market basket in 2017, divide it by the price of the market basket in 2018, and multiply by 100. Without the specific values from Table 6-5, the correct answer cannot be directly calculated here, but based on the options provided, if 74.07 is the correct answer, it indicates that the market basket's cost in 2017 was 74.07% of its cost in 2018, making the year 2017 cheaper in comparison to the base year 2018.