$$\begin{array} { c c c c }
\text { Item } & \begin{array} { c }
\text { Quantity } \
( 2009 )
\end{array} & \begin{array} { c }
\text { Price } \
( 2009 )
\end{array} & \begin{array} { c }
\text { Price } \
( 2010 )
\end{array} \
\hline \text { Salt } & 2 & \$ 1.00 & \$ 2.00 \
\text { Bread } & 20 & \$ 2.50 & \$ 3.00 \
\hline
\end{array}$$
-The data in the table above shows the consumption by families in a small (poor) economy.The families consume only salt and bread.The reference base period is 2009.The CPI in 2009 is

Question

$$\begin{array} { c c c c } 
\text { Item } & \begin{array} { c } 
\text { Quantity } \
( 2009 )
\end{array} & \begin{array} { c } 
\text { Price } \
( 2009 )
\end{array} & \begin{array} { c } 
\text { Price } \
( 2010 )
\end{array} \
\hline \text { Salt } & 2 & \$ 1.00 & \$ 2.00 \
\text { Bread } & 20 & \$ 2.50 & \$ 3.00 \
\hline
\end{array}$$
-The data in the table above shows the consumption by families in a small (poor) economy.The families consume only salt and bread.The reference base period is 2009.The CPI in 2009 is

Quizplus · Accepted Answer

The CPI is calculated by dividing the cost of the same basket of goods in the current year by the cost of the same basket of goods in the base year and multiplying by 100. In this case, the cost of the basket of goods in 2009 is 2*1.00 + 20*2.50 = 52.00. The cost of the same basket of goods in 2010 is 2*2.00 + 20*3.00 = 64.00. Therefore, the CPI in 2010 is 64.00/52.00 * 100 = 123.08.

-The Data in the Table Above Shows the Consumption by }