Answer:
E. None of the above
Explanation:
Table 4
Base Year (2013) 2018 2013 2018
Product Quantity Price Price Total Amount Total Amount
Milk 50 $1.20 $1.50 $60 $75
Bread 100 $1.00 $1.10 $100 $110
Therefore CPI for 2018 = $75 +$110 = $185
Answer:
B) 116
Explanation:
2013 2018
Product Quantity Price Price
Milk 50 $1.20 $1.50
Bread 100 $1.00 $1.10
price of CPI basket 2013 = (50 x $1.20) + (100 x $1) = $160
price of CPI basket 2018 = (50 x $1.50) + (100 x $1.10) = $185
CPI 2018 = ($185 / $160) x 100 = 115.6 ≈ 116
The CPI measures the price level of a basket of goods compared to a base year, in this case the base year was 2013.
