The table shows the prices and the quantities consumed in Carnivore Country.The base year is 2013.This means that 2013 is the year the typical basket was determined so the quantities consumed in 2013 are the only quantities needed to calculate the CPI in each year.
Table
$$\begin{array} { | c | c | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Price of } \
\text { beef }
\end{array} & \begin{array} { c }
\text { Quartity of } \
\text { beef }
\end{array} & \begin{array} { c }
\text { Price of } \
\text { pork }
\end{array} & \begin{array} { c }
\text { Quartity of } \
\text { pork }
\end{array} \
\hline 2013 & \text { R38 } & 100 & \text { R19 } & 100 \
\hline 2014 & \text { R47.50 } & 90 & \text { R.7.10 } & 120 \
\hline 2015 & \text { R52.25 } & 105 & \text { R19 } & 130 \
\hline
\end{array}$$
-Refer to the table above.What are the values of the CPI in 2013, 2014, and 2015, respectively?
A)83.5, 94.2, 100
B)100, 113.3, 125
C)None of these answers.
D)100, 111, 139.6
E)100, 109.2, 116

Question

The table shows the prices and the quantities consumed in Carnivore Country.The base year is 2013.This means that 2013 is the year the typical basket was determined so the quantities consumed in 2013 are the only quantities needed to calculate the CPI in each year.
Table
 $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of } \
\text { beef }
\end{array} & \begin{array} { c } 
\text { Quartity of } \
\text { beef }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { pork }
\end{array} & \begin{array} { c } 
\text { Quartity of } \
\text { pork }
\end{array} \
\hline 2013 & \text { R38 } & 100 & \text { R19 } & 100 \
\hline 2014 & \text { R47.50 } & 90 & \text { R.7.10 } & 120 \
\hline 2015 & \text { R52.25 } & 105 & \text { R19 } & 130 \
\hline
\end{array}$$
-Refer to the table above.What are the values of the CPI in 2013, 2014, and 2015, respectively?
A)83.5, 94.2, 100
B)100, 113.3, 125
C)None of these answers.
D)100, 111, 139.6
E)100, 109.2, 116

Quizplus · Accepted Answer

The CPI for the base year (2013) is always 100. For 2014 and 2015, the CPI is calculated using the formula: CPI = (Cost of basket in current year / Cost of basket in base year) * 100. Using the 2013 quantities: 2013 cost = (38*100) + (19*100) = 5700; 2014 cost = (47.5*100) + (7.1*100) = 6460; 2015 cost = (52.25*100) + (19*100) = 7125. Thus, CPI for 2014 = (6460/5700)*100 = 113.3; CPI for 2015 = (7125/5700)*100 = 125.

The Table Shows the Prices and the Quantities Consumed in Carnivore