If the value of the consumer price index (CPI)in 2013 was 135 and the value of the CPI in 2012 was 117,we could correctly say that the:
A) typical basket of goods was about 18% more expensive in 2013 than in 2012.
B) typical basket of goods was about 18% less expensive in 2013 than in 2012.
C) typical basket of goods was about 15.4% more expensive in 2013 than in 2012.
D) average price of all items included in gross domestic product (GDP) was about 18% more expensive in 2013 than in 2012.
E) average price of all items included in GDP was about 15.4% more expensive in 2013 than in 2012.

Question

Quizplus · Accepted Answer

To calculate the percentage increase in CPI from 2012 to 2013, we use the formula:
((CPI in 2013 - CPI in 2012)/CPI in 2012) x 100%
Substituting the values, we get:
((135-117)/117) x 100% = 15.4%
Therefore, the typical basket of goods was about 15.4% more expensive in 2013 than in 2012.

If the Value of the Consumer Price Index (CPI)in 2013