Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2015 the CPI was 226.What does this "226" mean?
A)What cost $100 in 1983 on average cost 226 times as much in 2015.
B)What cost $100 in 1983 on average cost $226 more in 2015.
C)What cost $100 in 1983 on average cost 100/226 (or 0.44)times as much in 2015 (that is,it will cost $22 in 2015).
D)What cost $100 in 1983 on average cost $126 more in 2015.

Question

Quizplus · Accepted Answer

The CPI of 226 in 2015 means that prices have increased by 126% since 1983. Therefore, what cost $100 in 1983 would cost $226 in 2015, which is $126 more.

Suppose That 1983 Is the Base Year for the Consumer