the following table shows the prices of good X and good Y for 2013-2015. In addi
ID: 1141005 • Letter: T
Question
the following table shows the prices of good X and good Y for 2013-2015. In addition, assume the basket of goods used to compute the Consumer Price Index consists of 3 units of good X and 4 units of good Y.
Table 24-15 The following table shows the prices of good X and good Y for 2013-2015. In addition, assume the basket of goods used to compute the Consumer Price Index consists of 3 units of good X and 4 units of good Y Price of Good X Price of Good Y Year 2013 20 20154.003.00 1.00 2.00 2.00 14 3.00 Refer to Table 24-15. If the base year is 2014, the value of the Consumer Price Index in 2013 is a. 41.2 O b. 58.8. . 93.0. O d. 114.0.Explanation / Answer
The total expenditure can be calculated by the following equation
TE = 3X+4Y, where 3 and 4 are quantities consumed of good X and good Y and X and Y are price of X and Y.
The CPI for 2013 is calculated = TE2013/TE2014*100
The correct option is b. 58.8
Year Px Py TE CPI 2013 2 1 10 58.82 2014 3 2 17 100.00 2015 4 3 24 141.18Related Questions
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