if the CPI of mythopia is 100, 1132.1 and 120.8 for 2010, 2011 and 2012 respectively, between 2010 and 2012, the purchasing power of the consumer's myth is?

Answer 1

To find the purchasing power of consumers in Mythopia between 2010 and 2012, we can use the Consumer Price Index (CPI) values provided for each year to assess the changes in purchasing power. The purchasing power can be inversely related to the CPI: as the CPI rises, purchasing power declines.

Let's use the following CPI values:

• 2010: 100
• 2011: 1132.1
• 2012: 120.8

However, it seems there is a possible misunderstanding with the CPI values, especially for the year 2011 which is significantly higher than the CPI for both 2010 and 2012. It’s unusual for CPI values to rise in such a manner.

Assuming the values for CPI are correct, here's how to compute the relative change in purchasing power:

1. Calculate the purchasing power for each year based on the CPI:

   • 2010: Purchasing Power = 1 / CPI = 1 / 100 = 0.01 (Base year, let's keep this as 1 for simplification)
   • 2011: Purchasing Power = 1 / CPI = 1 / 1132.1 ≈ 0.000883
   • 2012: Purchasing Power = 1 / CPI = 1 / 120.8 ≈ 0.00828

2. Compare the purchasing power from 2010 to 2012:

   • From 2010 to 2011: Purchasing power decreased significantly due to the high CPI of 1132.1 in 2011.
   • From 2011 to 2012: There is an improvement in purchasing power, but it is still below the baseline of 2010.

3. Conclusion: The purchasing power of consumers in Mythopia decreased significantly from 2010 to 2011, then improved slightly from 2011 to 2012, but it would still be lower than in 2010.

If you provide the correct CPI values, we can make a more accurate calculation.