Table 24-4
Lee's expenditures on food for three consecutive years, along with other values, are presented in the following table.

-Refer to Table 24-4. Suppose Lee's Year 2 food expenditures in Year 3 dollars amount to $9,030. Then x, the consumer price index for Year 3, has a value of
A)8,441.
B)7,866.
C)8,327.
D)166.5.

Question

Table 24-4
Lee's expenditures on food for three consecutive years, along with other values, are presented in the following table.
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-Refer to Table 24-4. Suppose Lee's Year 2 food expenditures in Year 3 dollars amount to $9,030. Then x, the consumer price index for Year 3, has a value of
A)8,441. 
B)7,866. 
C)8,327. 
D)166.5.

Quizplus · Accepted Answer

To convert Lee's Year 2 food expenditures to Year 3 dollars, we use the formula: Expenditures in Year 3 dollars = (Expenditures in Year 2 dollars) * (CPI in Year 3 / CPI in Year 2). Given that the expenditures in Year 3 dollars are $9,030 and assuming the expenditures in Year 2 dollars are the base (100), we solve for x (CPI in Year 3) as follows: 9030 = 100 * (x / 100), which simplifies to x = 9030 / 1 = 9030. However, without the actual table or additional information, the correct interpretation involves understanding the relationship between CPI and expenditures across years. The provided solution assumes specific values that cannot be directly inferred without the table data. Therefore, the correct answer involves understanding that the CPI for Year 3 (x) is used to adjust Year 2 expenditures to Year 3 dollars, but the exact value cannot be determined without additional information or a clear understanding of the formula's application.

Table 24-4 Lee's Expenditures on Food for Three Consecutive Years, Along with Along