Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2014 the CPI was 190.What does this "190" mean?
A)What cost $100 in 1982 on average cost 190 times as much in 2014.
B)What cost $100 in 1982 on average cost $190 in 2014.
C)What cost $100 in 1982 on average cost 0.19 times as much in 2014 (that is,it cost $19 in 2014).
D)What cost $100 in 1982 on average cost $19 more in 2014.

Question

Quizplus · Accepted Answer

The CPI of 190 in 2014 means that, on average, prices for goods and services included in the CPI were 1.9 times higher than they were in the base year of 1982. Therefore, if something cost $100 in 1982, it would cost $190 in 2014. Choice B accurately reflects this relationship.

Suppose That 1982 Is the Base Year for the Consumer