The basket of goods costs $80 in 2011 and $140 in 2012.What is the CPI in 2012 when the base year is the year 2011?

Question

Quizplus · Accepted Answer

To calculate the CPI in 2012 using 2011 as the base year, we need to use the following formula: 
CPI = (Cost of basket in year 2 / Cost of basket in base year) x 100

Plugging in the given values: 
CPI = (140/80) x 100 
CPI = 1.75 x 100 
CPI = 175

Therefore, the CPI in 2012 when the base year is 2011 is 175. Option C is correct.

The Basket of Goods Costs $80 in 2011 and $140