If the CPI is 119 in Year X,then it costs _______ in Year X to buy the same market basket that cost _______ in the base period.
A) $100;$119
B) $119;$100
C) $19;$100
D) $100;$19

Question

Quizplus · Accepted Answer

The CPI indicates the change in the price level of a market basket of goods and services over time, relative to a base period. Therefore, if the CPI is 119 in Year X, it means that the price level has increased by 19% compared to the base period.

To know the cost of the market basket in Year X, we need to know its cost in the base period. We don't have that information in the question, but we can assume that the cost in the base period was $100 (it could be any other value, but this is a common assumption).

So, if the cost in the base period was $100, then the cost in Year X would be 119% of $100, which is:

$100 x 1.19 = $119

Therefore, the answer is B: $119; $100.

If the CPI Is 119 in Year X,then It Costs