The prices of consumer goods do not always exactly follow the CPI. The following chart shows several consumer items, along with their respective prices in 1983 and today. Item Price in 1983 ($) Current Price ($) Shower curtain 8.85 15.66 Floor rug 71.25 119.75 T-shirt 13.95 23.99 Oscillating fan 22.75 37.50 Using the prices shown on this chart, which of the following is a reasonable estimate of the current CPI? a. 164 b. 170 c. 185 d. 199

There are a few ways to calculate CPI: one is to add up all of the current costs for certain items and divide by the old cost for the same items, then multiply that result by 100 to get the CPI.

(Current prices/ Old Prices) *100= CPI

[tex]\frac{15.66+119.75+23.99+37.50}{8.85+71.25+13.95+22.75} * 100[/tex]

[tex]\frac{196.90}{116.80} * 100[/tex]

1.685*100 = 168.5

Since the question asks for a reasonable estimate, it is ok to round to 170 (answer choice B).

ewomazinoade ewomazinoade · Answer 2 · 2022-03-30T12:41:32+02:00

Using the prices shown on this chart, a reasonable estimate of the current CPI is 170.

What is the consumer price index?

The consumer price index is the ratio of a basket of goods in the current year to the basket of goods in the base year. It is used to measure inflation.

CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

CPI = (15.66 + 119.75 + 23.99 + 37.50) / (8.85 + 71.25 + 13.95 + 22.75) = 170

To learn more about, consumer price index, please check: https://brainly.com/question/26382640