Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Price of a } \
\text { pilldw }
\end{array} & \begin{array} { c }
\text { Price af a } \
\text { Hotdlog }
\end{array} \
\hline 2009 & \$ 40 & \$ 3 \
\hline 2010 & \$ 45 & \$ 4 \
\hline 2011 & \$ 50 & \$ 3 \
\hline
\end{array}$$
-Refer to Table 11-5. If the base year is 2010, then the consumer price index was

Question

Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of a } \
\text { pilldw }
\end{array} & \begin{array} { c } 
\text { Price af a } \
\text { Hotdlog }
\end{array} \
\hline 2009 & \$ 40 & \$ 3 \
\hline 2010 & \$ 45 & \$ 4 \
\hline 2011 & \$ 50 & \$ 3 \
\hline
\end{array}$$
-Refer to Table 11-5. If the base year is 2010, then the consumer price index was

Quizplus · Accepted Answer

The consumer price index (CPI) is a measure of the average change in prices over time in a fixed basket of goods and services. The base year is the year in which the CPI is set to 100. In this case, the base year is 2010.To calculate the CPI for a given year, we take the cost of the basket of goods and services in that year and divide it by the cost of the same basket in the base year. We then multiply the result by 100.For example, the cost of the basket of goods and services in 2009 was $40 x 2 + $3 x 15 = $110. The cost of the same basket in 2010 was $45 x 2 + $4 x 15 = $120. Therefore, the CPI for 2009 is $110 / $120 x 100 = 83.33.The CPI for 2011 is $50 x 2 + $3 x 15 = $120 / $120 x 100 = 96.67.

Table 11-5 the Table Below Pertains to Napandsnack, an Economy

Table 11-5
the Table Below Pertains to Napandsnack, an Economy