Table 13-3
$$\begin{array}{c}
\quad \quad \quad\text { Base Year (2006) } \quad \quad 2013\
\begin{array} { | l | c | c | c | }
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \
\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \
\hline \text { CDs } & 10 & 20.00 & 21.00 \
\hline
\end{array}
\end{array}$$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals
A)75.
B)93.
C)108.
D)121.

Question

Table 13-3
 $$\begin{array}{c}
 \quad \quad \quad\text { Base Year (2006) } \quad \quad 2013\
\begin{array} { | l | c | c | c | } 
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Price } \
\hline \text { Cokes } & 100 & \$ 0.50 & \$ 0.75 \
\hline \text { Hamburgers } & 200 & 2.00 & 2.50 \
\hline \text { CDs } & 10 & 20.00 & 21.00 \
\hline
\end{array}
\end{array}$$
-Refer to Table 13-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals
A)75.
B)93.
C)108.
D)121.

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated by taking the cost of the market basket in the current year (2013) and dividing it by the cost of the market basket in the base year (2006), then multiplying by 100. The cost in 2006 is (100*0.50) + (200*2.00) + (10*20.00) = $450. The cost in 2013 is (100*0.75) + (200*2.50) + (10*21.00) = $545. The CPI for 2013 is (545/450) * 100 = 121.11, which rounds to 121.

Table 13-3 -Refer to Table 13-3