Table 6-2
$$\begin{array} { | l | l | l | }
\hline \text { Year } & \text { Price of park } & \text { Price of carm } \
\hline 2012 & \$ 20 & \$ 12 \
\hline 2013 & \$ 25 & \$ 18 \
\hline
\end{array}$$
-Refer to the Table 6-2.Suppose that the basket of goods in the CPI consisted of 3 units of pork and 4 units of corn.What is the consumer price index for 2013 if the base year is 2012?

Question

Table 6-2
 $$\begin{array} { | l | l | l | } 
\hline \text { Year } & \text { Price of park } & \text { Price of carm } \
\hline 2012 & \$ 20 & \$ 12 \
\hline 2013 & \$ 25 & \$ 18 \
\hline
\end{array}$$
-Refer to the Table 6-2.Suppose that the basket of goods in the CPI consisted of 3 units of pork and 4 units of corn.What is the consumer price index for 2013 if the base year is 2012?

Quizplus · Accepted Answer

The cost of the basket in 2012 is (3 units of pork * $20) + (4 units of corn * $12) = $60 + $48 = $108. The cost of the basket in 2013 is (3 units of pork * $25) + (4 units of corn * $18) = $75 + $72 = $147. The CPI for 2013 is ($147 / $108) * 100 = 136.11.

Table 6-2 -Refer to the Table 6-2