Table 13-3
$ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $$\text { Base Year (2013) } 2018$
$\begin{array}{|c|c|r|r|}
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \
\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \
\hline \text { CDs } & 10 & 20.00 & 21.00 \
\hline
\end{array}$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products-Cokes,hamburgers,and CDs-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals
A) 75.
B) 93.
C) 108.
D) 121.

Question

Table 13-3
  $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $ $ \quad $$\text { Base Year (2013) } 2018$
$\begin{array}{|c|c|r|r|}
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \
\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \
\hline \text { CDs } & 10 & 20.00 & 21.00 \
\hline
\end{array}$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products-Cokes,hamburgers,and CDs-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals
A) 75.
B) 93.
C) 108.
D) 121.

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated by taking the cost of the market basket in the current year (2018) and dividing it by the cost of the market basket in the base year (2013), then multiplying by 100. The cost in 2013 is $ (100 \times 0.50) + (200 \times 2.00) + (10 \times 20.00) = 50 + 400 + 200 = 650 $. The cost in 2018 is $ (100 \times 0.75) + (200 \times 2.50) + (10 \times 21.00) = 75 + 500 + 210 = 785 $. The CPI for 2018 is $ \frac{785}{650} \times 100 \approx 121 $.

Table 13-3 \quad \quad \quad

Table 13-3 $\quad$ $\quad$ $\quad$