$$\begin{array} { | l | l | l | l | }
\hline & \begin{array} { l }
\text { CPI basket } \
\text { quantity }
\end{array} & 2003 \text { price } & 2011 \text { price } \
\hline \text { DVDs } & 10 \text { discs } & \$ 16 \text { per disc } & \$ 12 \text { per dis } \
\hline \begin{array} { l }
\text { Bottled } \
\text { water }
\end{array} & 200 \text { bottles } & \$ 1.00 \text { per bottle } & \$ 1.25 \text { per bottle } \
\hline
\end{array}$$
-If 2003 is the reference base period, what is the price index for the CPI basket of goods for 2011 in the above table?
A) 102.8
B) 128.0
C) 97.3
D) zero because the price of CDs fell and the price of water increased

Question

$$\begin{array} { | l | l | l | l | } 
\hline & \begin{array} { l } 
\text { CPI basket } \
\text { quantity }
\end{array} & 2003 \text { price } & 2011 \text { price } \
\hline \text { DVDs } & 10 \text { discs } & \$ 16 \text { per disc } & \$ 12 \text { per dis } \
\hline \begin{array} { l } 
\text { Bottled } \
\text { water }
\end{array} & 200 \text { bottles } & \$ 1.00 \text { per bottle } & \$ 1.25 \text { per bottle } \
\hline
\end{array}$$
-If 2003 is the reference base period, what is the price index for the CPI basket of goods for 2011 in the above table?
A) 102.8
B) 128.0
C) 97.3
D) zero because the price of CDs fell and the price of water increased

Quizplus · Accepted Answer

To calculate the CPI for 2011, find the cost of the basket in 2003 and 2011, then use the formula: (Cost in 2011 / Cost in 2003) * 100. The cost in 2003 is (10 * $16) + (200 * $1) = $360. The cost in 2011 is (10 * $12) + (200 * $1.25) = $370. The CPI is ($370 / $360) * 100 = 102.8.

-If 2003 Is the Reference Base Period, What Is the |