Table 9-3

-Refer to Table 9-3.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 9-3
 
-Refer to Table 9-3.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 CPI for 2018 is 121, indicating a 21% increase in the price level compared to the base year.

Table 9-3 -Refer to Table 9-3.Assume the Market Basket for the Consumer