Table 6-1
$$\begin{array} { | l | l | l | }
\hline \text { Year } & \text { Peaches } & \text { Pecans } \
\hline 2012 & \$ 14 \text { per bushel } & \$ 9 \text { per bushel } \
\hline 2013 & \$ 12 \text { per bushel } & \$ 14 \text { per bushel } \
\hline
\end{array}$$
-Refer to the Table 6-1.Suppose that the typical consumer basket consists of 5 bushels of peaches and 10 bushels of pecans and that the base year is 2012.What is the consumer price index for 2013?

Question

Table 6-1
 $$\begin{array} { | l | l | l | } 
\hline \text { Year } & \text { Peaches } & \text { Pecans } \
\hline 2012 & \$ 14 \text { per bushel } & \$ 9 \text { per bushel } \
\hline 2013 & \$ 12 \text { per bushel } & \$ 14 \text { per bushel } \
\hline
\end{array}$$
-Refer to the Table 6-1.Suppose that the typical consumer basket consists of 5 bushels of peaches and 10 bushels of pecans and that the base year is 2012.What is the consumer price index for 2013?

Quizplus · Accepted Answer

To calculate the consumer price index for 2013, we need to calculate the cost of the typical consumer basket in both years, using the prices in each year.

In 2012, the cost of the basket is:

$14 x 5 (peaches) + $9 x 10 (pecans) = $70 + $90 = $160

In 2013, the cost of the basket is:

$12 x 5 (peaches) + $14 x 10 (pecans) = $60 + $140 = $200

Now we can calculate the consumer price index for 2013:

(Cost of basket in 2013 / Cost of basket in 2012) x 100

($200 / $160) x 100 = 125

Therefore, the consumer price index for 2013 is 125.

Table 6-1 -Refer to the Table 6-1