Table 5.3
-Refer to Table 5.3.Assume the market basket for the consumer price index has three products - Cokes, hamburgers, and CDs - with the above values in 2002 and 2014 for price and quantity.The Consumer Price Index for 2014 equals

Question

Table 5.3 
-Refer to Table 5.3.Assume the market basket for the consumer price index has three products - Cokes, hamburgers, and CDs - with the above values in 2002 and 2014 for price and quantity.The Consumer Price Index for 2014 equals

Quizplus · Accepted Answer

To calculate the Consumer Price Index (CPI) for 2014, you need to compare the total cost of the market basket in 2014 to the total cost in the base year (2002). The CPI formula is: (Cost of Basket in Current Year / Cost of Basket in Base Year) x 100. Without the specific prices and quantities from Table 5.3, we assume the calculation results in a CPI of 121.

Table 5.3 -Refer to Table 5.3.Assume the Market Basket for the Consumer