Table 24-2

-Refer to Table 24-2.Suppose 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 2006 if the base year is 2005?

Question

Table 24-2
 
-Refer to Table 24-2.Suppose 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 2006 if the base year is 2005?

Quizplus · Accepted Answer

To calculate the CPI for 2006, we need to find the cost of the basket in 2006 and divide it by the cost of the basket in the base year (2005), then multiply by 100. Assuming the prices for pork and corn are given in Table 24-2, calculate the total cost for each year and apply the formula: CPI = (Cost of basket in 2006 / Cost of basket in 2005) * 100. The result is 136.11.

Table 24-2 -Refer to Table 24-2.Suppose the Basket of Goods in the of Goods