Table 24-3
The following table lists the per gallon prices of gas and milk for the months of September, October, and November. Assume that the typical consumer buys 30 gallons of gas and 15 gallons of milk each month, and that September is the base period.

$$\begin{array} { | c | c | c | }
\hline \text { Month } & \begin{array} { c }
\text { Price of Gas } \
\text { (Dollars per gallon) }
\end{array} & \begin{array} { c }
\text { Price of Milk } \
\text { (Dollars per gallon) }
\end{array} \
\hline \text { September } & 3.50 & 3.50 \
\hline \text { October } & 3.85 & 3.52 \
\hline \text { November } & 4.25 & 3.58 \
\hline
\end{array}$$
-Refer to Table 24-3. What is the consumer price index for October?
A)93.58
B)86.92
C)106.86
D)92.88

Question

Table 24-3
The following table lists the per gallon prices of gas and milk for the months of September, October, and November. Assume that the typical consumer buys 30 gallons of gas and 15 gallons of milk each month, and that September is the base period.
​
​
 $$\begin{array} { | c | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Price of Gas } \
\text { (Dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Price of Milk } \
\text { (Dollars per gallon) }
\end{array} \
\hline \text { September } & 3.50 & 3.50 \
\hline \text { October } & 3.85 & 3.52 \
\hline \text { November } & 4.25 & 3.58 \
\hline
\end{array}$$
-Refer to Table 24-3. What is the consumer price index for October?
A)93.58
B)86.92
C)106.86
D)92.88

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for October can be calculated by finding the total cost of the goods in the base period (September) and the total cost in the current period (October), then dividing the current period's total cost by the base period's total cost and multiplying by 100. For September (base period), the total cost is (30 gallons of gas * $3.50/gallon) + (15 gallons of milk * $3.50/gallon) = $105 + $52.5 = $157.5. For October, the total cost is (30 gallons of gas * $3.85/gallon) + (15 gallons of milk * $3.52/gallon) = $115.5 + $52.8 = $168.3. Therefore, the CPI for October is ($168.3 / $157.5) * 100 = 106.86.

Table 24-3 the Following Table Lists the Per Gallon Prices

Table 24-3
the Following Table Lists the Per Gallon Prices