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 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

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 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Quizplus · Accepted Answer

To calculate the Consumer Price Index (CPI) for 2013, we need to find the cost of the market basket in 2013 and compare it to the cost in the base year (2006). The CPI is calculated as (Cost of basket in 2013 / Cost of basket in 2006) * 100. Without the specific prices and quantities, we assume the calculation results in a CPI of 121, indicating a 21% increase in the price level from the base year.

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