100(191/137)= 139.42
(54/137)100 = 39.42%
If someone could help me with this question, that would really help. I'm just not sure what the formula would be?
Suppose a market basket of goods and services includes the goods for two successive years. According to the table, between the years 2012 and 2013, what was the percentage change in the consumer price index? Explain. (Remember to include the total cost of all goods purchased from each year.)
This is how the chart looks :
Good/Service | Quantity | 2012 Unit Price (Base Year) | 2013 Unit Price (Current Year)
Cola | 20 | $0.75 | $1.50
Blue Jeans | 3 | $36.00 | $42.00
Hamburgers | 14 | $1.00 | $2.50
3 answers
Anonymous got it wrong I'm afraid. The inflation was 41 %.
Wee need to calculate the new CPI first, which should be around 141 (100/137 * 193 ). Since the first CPI (2012) is a base year, its value is 100. Therefore we could conclude that the inflation change was 41 %.
Wee need to calculate the new CPI first, which should be around 141 (100/137 * 193 ). Since the first CPI (2012) is a base year, its value is 100. Therefore we could conclude that the inflation change was 41 %.
2012 COLA: 0.75*20 = $15
2012 BLUE JEANS: 36*3 = $108
2012 HAMBURGERS: 1*14 = $14
Price of 2012 (base year) basket = $137
2013 COLA: 1.5*20 = $30
2013 BLUE JEANS: 42*3 = $129
2013 HAMBURGERS: 2.5*14 = $35
Price of 2013 basket = $194
2013 CPI = (194/137) * 100 = 142
2012 CPI = 100, because 2012 is the base year.
Therefore the % change in the consumer price index is 42%
2012 BLUE JEANS: 36*3 = $108
2012 HAMBURGERS: 1*14 = $14
Price of 2012 (base year) basket = $137
2013 COLA: 1.5*20 = $30
2013 BLUE JEANS: 42*3 = $129
2013 HAMBURGERS: 2.5*14 = $35
Price of 2013 basket = $194
2013 CPI = (194/137) * 100 = 142
2012 CPI = 100, because 2012 is the base year.
Therefore the % change in the consumer price index is 42%
0 answers