Explain in detail how you get the CPI specifically for 2010 please :) Consider a
ID: 1150829 • Letter: E
Question
Explain in detail how you get the CPI specifically for 2010 please :)
Consider an economy that produces and consumes only three types of fruit: apples, oranges and bananas. In 2009 and 2010, the production/consumption and price data were as follows: 2009 Fruit Quantity Price Apples 3000 $2 per unit Bananas 6000 $3 per unit Oranges 8000 $4 per unit 2010 Fruit Quantity Price Apples 4000 $ per unit Bananas 14000 $2 per unit Oranges 8000 $5 per unit Using 2009 as the reference base year and 2010 as the expenditure base year, the CPI equals 1 in 2009 and 1.089 in 2010 1.089 in 2009 and 1 in 2010 0.976 in 2009 and 1 in 2010 1 in 2009 and 0.976 in 2010Explanation / Answer
Solution: 1 in 2009 and 0.976 in 2010
Working:
Fruits
Quantity
Price
Current year
Price-base year
Base year
Apples
4000
3
12000
2
8000
Bananas
14000
2
28000
3
42000
Oranges
8000
5
40000
4
32000
80000
82000
CPI 2009 : 100
CPI 2010: 80,000/82,000 = 0.976
Fruits
Quantity
Price
Current year
Price-base year
Base year
Apples
4000
3
12000
2
8000
Bananas
14000
2
28000
3
42000
Oranges
8000
5
40000
4
32000
80000
82000
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