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 2017 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 2017 if the base year is 2016?

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for 2017, using 2016 as the base year, is calculated by taking the cost of the consumer's basket in the current year (2017) and dividing it by the cost of the same basket in the base year (2016), then multiplying by 100. Assuming the consumer buys the same quantity of apples and oranges each year, the calculation would be as follows:For 2016 (base year), the total cost = $3.00 (apples) + $1.00 (oranges) = $4.00.For 2017, the total cost = $4.00 (apples) + $2.00 (oranges) = $6.00.CPI for 2017 = ($6.00 / $4.00) * 100 = 150.Therefore, the CPI for 2017, with 2016 as the base year, is 150, indicating that the price level has increased by 50% from 2016 to 2017.

Table 62 -Refer to Table 6