Table 24-6
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs.
-Refer to Table 24-6. If the base year is 2010, then the consumer price index was
A)83.33 in 2009, 100.00 in 2010, and 96.67 in 2011.
B)85.56 in 2009, 100.00 in 2010, and 102.22 in 2011.
C)85.56 in 2009, 100.00 in 2010, and 96.67 in 2011.
D)92.22 in 2009, 99.00 in 2010, and 95.22 in 2011.

Question

Table 24-6
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. 
-Refer to Table 24-6. If the base year is 2010, then the consumer price index was
A)83.33 in 2009, 100.00 in 2010, and 96.67 in 2011. 
B)85.56 in 2009, 100.00 in 2010, and 102.22 in 2011. 
C)85.56 in 2009, 100.00 in 2010, and 96.67 in 2011. 
D)92.22 in 2009, 99.00 in 2010, and 95.22 in 2011.

Quizplus · Accepted Answer

The consumer price index (CPI) is a measure of the average change in prices over time in a fixed basket of goods and services. The base year is the year in which the CPI is set to 100. In this case, the base year is 2010, so the CPI was 100.00 in 2010. The CPI was 85.56 in 2009, which means that the prices of the goods and services in the basket were 85.56% of what they were in 2010. The CPI was 96.67 in 2011, which means that the prices of the goods and services in the basket were 96.67% of what they were in 2010.

Table 24-6 The Table Below Pertains to Napandsnack, an Economy in Which