Suppose in 2010 the cost of purchasing a basket of goods was $100. That same basket cost $150 in 2011. If 2010 is the base year, the consumer price index for 2011 is

Question

Quizplus · Accepted Answer

To calculate the consumer price index, we need to use the following formula:

CPI = (cost of basket in current year / cost of basket in base year) x 100

Using the information given in the question, we can calculate the CPI for 2011 as:

CPI = (150 / 100) x 100 = 150

Therefore, the answer is C, 150.

Suppose in 2010 the Cost of Purchasing a Basket of Goods