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. The consumer buys 2 units of apples and 4 units of oranges every year. 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. The consumer buys 2 units of apples and 4 units of oranges every year. What is the consumer price index for 2017 if the base year is 2016?

Quizplus · Accepted Answer

First, we need to calculate the total cost of the consumer’s basket for 2016 and 2017:

2016: (2 units of apples x $3.00) + (4 units of oranges x $1.00) = $10.00 
2017: (2 units of apples x $4.00) + (4 units of oranges x $2.00) = $16.00

Using 2016 as the base year, we can calculate the consumer price index for 2017:

CPI = (cost of basket in current year / cost of basket in base year) x 100 
CPI = ($16.00 / $10.00) x 100 = 160

Therefore, the consumer price index for 2017 if the base year is 2016 is 160. The best choice is D.

Table 62 -Refer to Table 6