Table 6.2
$$\begin{array}{l}
\text { Table } 6.2\
\begin{array} { | c | c | c | }
\hline \text { Year } & \text { Price of apples } & \text { Price of oranges } \
\hline 2016 & \$ 3.00 & \$ 1.00 \
\hline 2017 & \$ 4.00 & \$ 2.00 \
\hline
\end{array}
\end{array}$$
-Refer to Table 6.2. of a consumer's basket that consists of apples and oranges. What is the consumer price index for 2016 if the base year is 2016?

Question

Table 6.2
 $$\begin{array}{l}
\text { Table } 6.2\
\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Price of apples } & \text { Price of oranges } \
\hline 2016 & \$ 3.00 & \$ 1.00 \
\hline 2017 & \$ 4.00 & \$ 2.00 \
\hline
\end{array}
\end{array}$$
-Refer to Table 6.2. of a consumer's basket that consists of apples and oranges. What is the consumer price index for 2016 if the base year is 2016?

Quizplus · Accepted Answer

To calculate the consumer price index (CPI), we need to first calculate the cost of the basket in each year relative to the cost of the basket in the base year (2016).

For the base year of 2016, the cost of the basket is simply the price of the apples and oranges in 2016: 
Cost of basket in 2016 = (3.00 * 1) + (1.00 * 1) = $4.00

To calculate the cost of the basket in 2017, we need to use the prices of apples and oranges in 2017: 
Cost of basket in 2017 = (4.00 * 1) + (2.00 * 1) = $6.00

Now we can calculate the CPI for 2017 relative to the base year of 2016: 
CPI = (Cost of basket in 2017 / Cost of basket in 2016) * 100 
CPI = (6.00 / 4.00) * 100 
CPI = 150

Therefore, the CPI for 2016 (the base year) is 100, and the CPI for 2017 is 150.

Table 62 -Refer to Table 6