The following table lists the basket of goods in the
Consumer Price Index for the nation of Astro (Assume 2014 is the base year.)
Table 12.2
-Using the information in Table 12.2, the Astro Consumer Price Index for 2015 is
A) 87.
B) 99.
C) 126.
D) 238.

Question

The following table lists the basket of goods in the
Consumer Price Index for the nation of Astro (Assume 2014 is the base year.)
  Table 12.2
-Using the information in Table 12.2, the Astro Consumer Price Index for 2015 is
A) 87. 
B) 99. 
C) 126. 
D) 238.

Quizplus · Accepted Answer

To calculate the Consumer Price Index (CPI) for Astro in 2015, we need to find the prices of the goods in the basket for both 2014 and 2015. Then, we can use the formula:
CPI = (cost of basket in current year/cost of basket in base year) x 100
For example, the cost of the basket in 2014 was $500.20, and in 2015, the cost was $630.50. Using these values, we get:
CPI = (630.50/500.20) x 100 = 126
Therefore, the best choice is C, which is the CPI for Astro in 2015.

The Following Table Lists the Basket of Goods in the