12 of 28 (9 complete) The monthly market basket for consumers consists of pizza,

Question

12 of 28 (9 complete) The monthly market basket for consumers consists of pizza, t-shirts, and rent The table below shows market basket quantities and prices for the base year (Year 1) and in the following year Price in the ProductBase Year (Year 1) Price in Year 2 Quantity 15 Pizza T-Shirts Rent $2.50 $18.00 $300.00$33000 $2.00 $20.00 In Year 1, the CPI for the economy is (Round both answers to one decimal place.) In Year 2, the CPI for this economy is Enter your answer in each of the answer boxes O Type here to search Ii

Explanation / Answer

Item Quantity (base year) year 1 Price (Base year) Price (year 2) $ market basket in base year (year 1) $ market basket in ( year 2) $ Pizza 15 2.00 2.50 30 37.50 T-shirt 4 20.00 18.00 80 72.00 Rent 1 300.00 330.00 300 330.00 Total 410 439.50 Base year is year 1 CPI=( Cost of the base year market basket in the current period/Cost of the base year market basket in the base period)x100 CPI in base year is always 100 CPI in year 2 (439.50/410)*100 CPI for year 2 = 107.2

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