M Eco 2013 2nd Gord Rul X P Tak a Test C Hepburn Google Chrome C D openve e http
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M Eco 2013 2nd Gord Rul X P Tak a Test C Hepburn Google Chrome C D openve e https:// 136670024 ¢erwin; yes www.mathxl.com/Student/PlayerTest.aspx?testld ECO 2013 Summer B2016 TR 8am Quiz QUIZ 2 GDP and Unemployment MyEconLab This Question 1 p 14 of 20 (7 complete Main Menu Assignments The monthly market basket for consumers consists of pizza shirts, and rent Do Homework The table below shows market basket quantities and prices for the base year Year 1) and in the following year. Base Year (Year 1) Price in the Product Quantity Base Year Take a Quiz/Test $3.00 Pizza 25 $25.00 T-Shirts $500.00 Rent 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. Ask me anything Carla Hepburn & I 7/5/16 5:09 PM Time Remaining: 01:07:21 Submit Quiz This Quiz: 20 pts possible e Calendar Price in Year 2 $3.75 $22.50 $550.00 radebook Score see score see score zz Screenshot Added A screenshot was added to your Dropbox. 5:10Explanation / Answer
The CPI of the base year or year is 100. The CPI of the base year is always considered to be 100.
CPI of Year 2 = Market value of the basket in Year 2 / Market value of the basket in Base Year *100
market value of the basket in year 1 = 25 * 3 + 3 * 25 + 1 * 500 = 75 + 75 + 500 = $650
Market value of the basket in Year 2 = 25 * 3.75 + 3 * 22.50 + 1 * 550 = $711.25
CPI = 711.25 / 650 * 100 = 109.4 ( Answer )
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