Table 13-2
$ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $$\text { Base Year (2013) } 2018$
$\begin{array}{|c|c|c|r|}
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Milk } & 50 & \$ 1.20 & \$ 1.50 \
\hline \text { Bread } & 100 & 1.00 & 1.10 \
\hline
\end{array}$
-Refer to Table 13-2.Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals
A) 118.
B) 116.
C) 86.
D) 85.

Question

Table 13-2
  $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $$\text { Base Year (2013) } 2018$
$\begin{array}{|c|c|c|r|}
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Milk } & 50 & \$ 1.20 & \$ 1.50 \
\hline \text { Bread } & 100 & 1.00 & 1.10 \
\hline
\end{array}$
-Refer to Table 13-2.Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals
A) 118.
B) 116.
C) 86.
D) 85.

Quizplus · Accepted Answer

To calculate the Consumer Price Index (CPI), we need to first calculate the cost of the market basket in both years:
- 2013: (50 x $1.20) + (100 x $1.00) = $170
- 2018: (50 x $1.50) + (100 x $1.10) = $195

Next, we divide the cost of the market basket in 2018 by the cost of the market basket in the base year (2013) and multiply by 100:

CPI = ($195 / $170) x 100 = 114.7

So the CPI for 2018 is 114.7, which we can round to 116. Therefore, the best choice is B.

Table 13-2 \quad \quad \quad

Table 13-2 $\quad$ $\quad$ $\quad$