Suppose that the consumer price index is 160,using the base year of 1982-84.If a market basket of goods and services costs $525,what did it cost in the base year?
A) $30
B) $100
C) $160
D) $328
E) $525

Question

Quizplus · Accepted Answer

To find the cost in the base year, we need to use the formula:

Cost in base year = (Cost in current year / CPI in current year) x 100

Plugging in the given values:

Cost in base year = ($525 / 160) x 100
Cost in base year = $328.125

Rounding to the nearest dollar, the answer is D) $328.

Suppose That the Consumer Price Index Is 160,using the Base