The basket of goods costs $80 in 2011 and $140 in 2012. What is the CPI in 2012 when the base year is the year 2011?

Name: The basket of goods costs $80 in 2011 and $140 in 2012. What is the CPI in 2012 when the base year is the year 2011?
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Question

Quizplus · Accepted Answer

To calculate the CPI, we use the formula:

CPI = (Cost of basket in current year / Cost of basket in base year) x 100

Plugging in the values:

CPI = (140 / 80) x 100 
CPI = 1.75 x 100 
CPI = 175

Therefore, the CPI in 2012 when the base year is the year 2011 is 175.

The Basket of Goods Costs $80 in 2011 and $140