Suppose, the value of the market basket in 2017 was $30,000 and that in the base...

Question

Question

Suppose, the value of the market basket in 2017 was $30,000 and that in the base year (1982-84) was $20,000. Compute the CPI for 2017.

business economics

Answer 1

Answer #1

Answer:

Given:

The value of the market basket in 2017 = $30,000

Value of market basket in the base year = $20,000.

CPI for 2017 = (Value of market basket in 2017) / (Value of market basket in the base year) * 100

= [30,000 / 20,000] *100

=150

Thus CPI for 2017 is 150

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Answer 2

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