-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the CPI in 2016?
A) 320
B) 1.00
C) 3.20
D) 100

Question

-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the CPI in 2016?
A) 320 
B) 1.00 
C) 3.20 
D) 100

Quizplus · Accepted Answer

The Consumer Price Index (CPI) in the base year (2016, in this case) is always 100. This is because the CPI measures changes in price level over time relative to a base year, and in the base year, the price level is defined as 100.

-In 2016, Consumers in Dexter Consumed Only Books and Pens