-Consumers in a country buy only two goods,sneakers and manicures.The prices and quantities purchased by urban households are in the table above.The reference base year is 2011.For these data,the CPI for 2012 is

Question

Quizplus · Accepted Answer

The CPI is calculated by taking the cost of the basket of goods in the current year (2012) and dividing it by the cost of the basket in the base year (2011), then multiplying by 100. If the CPI for 2012 is 110, it means there was a 10% increase in the price level from the base year.

-Consumers in a Country Buy Only Two Goods,sneakers and Manicures