If the Consumer Price Index (1982-1984 = 100) is 237.1, this means that:
A) prices have increased 137.1 percent so that it now costs $237.10 to buy goods and services that cost $100 in 1982-1984.
B) prices have increased 237.1 percent so that it now costs $337.10 to buy goods and services that cost $100 in 1982-1984.
C) since 1982-1984 = 100, the current price is (1982-1984)/237.1 = 1898/237.1 = $8.00.
D) a mistake has been made because 1982-1984 = 1,898 is much greater than 100.
E) a mistake has been made because an index number can only take values between 0 and 1.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. A CPI of 237.1 means that prices have increased 137.1 percent (237.1-100) compared to the base period of 1982-1984, making it cost $237.10 to buy goods and services that cost $100 in 1982-1984.

If the Consumer Price Index (1982-1984 = 100) Is 237