$$\begin{array} { l c c c c }
{ \text { Item } } & \begin{array} { c }
\text { Quantity } \
( 2009 )
\end{array} & \begin{array} { c }
\text { Price } \
( 2009 )
\end{array} & \begin{array} { c }
\text { Quantity } \
( 2010 )
\end{array} & \begin{array} { c }
\text { Price } \
\mathbf { ( 2 0 1 0 ) }
\end{array} \
\hline \text { Sneakers } & 2 & \$ 55 & 2 & \$ 60 \
\text { Manicures } & 1 & \$ 35 & 1 & \$ 40 \
\hline
\end{array}$$
-Consumers in a country buy only two goods, sneakers and manicures.The prices and quantities purchased by urban households are in the table above.The reference base year is 2009.For these data, the CPI for 2010 is

Question

$$\begin{array} { l c c c c } 
 { \text { Item } } & \begin{array} { c } 
\text { Quantity } \
( 2009 )
\end{array} & \begin{array} { c } 
\text { Price } \
( 2009 )
\end{array} & \begin{array} { c } 
\text { Quantity } \
( 2010 )
\end{array} & \begin{array} { c } 
\text { Price } \
\mathbf { ( 2 0 1 0 ) }
\end{array} \
\hline \text { Sneakers } & 2 & \$ 55 & 2 & \$ 60 \
\text { Manicures } & 1 & \$ 35 & 1 & \$ 40 \
\hline
\end{array}$$
-Consumers in a country buy only two goods, sneakers and manicures.The prices and quantities purchased by urban households are in the table above.The reference base year is 2009.For these data, the CPI for 2010 is

Quizplus · Accepted Answer

The CPI for 2010 is calculated by comparing the cost of the basket of goods in 2010 to the cost in the base year (2009). The cost in 2009 is (2*$55 + 1*$35) = $145. The cost in 2010 is (2*$60 + 1*$40) = $160. CPI = (160/145) * 100 = 110.34, rounded to 110.

-Consumers in a Country Buy Only Two Goods, Sneakers and \text