Ask Question
BusinessBusiness
12 June, 02:03

Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $58. The value of the CPI in 2016 was

+2
Answers (1)
  1. 12 June, 02:29
    0
    Answer:Consumer Price Index (CPI) 2016 = 111.54

    Explanation:

    consumer price index is a measure of price change over a period of time in other words consumer price index is a measure of inflation. A number of good are selected and their prices are monitored each year in order to measured against the base year prices in order to determine changes in the general price level.

    The goods selected represent the spending patterns of the an average consumer in that economy or country. When the price of these goods rise over time when compared to the Basket Cost of the base year we can assume that there is a rise in the general price level

    Base year = 2014

    Basket's cost 2014 = $52

    Base cost 2016 = $58

    Consumer Price index (CPI) 2016 = Basket costs 2016/base year Basket cost 2014.

    Consumer Price index (CPI) 2016 = 58/52 = 1.115384615 x 100

    Consumer Price Index (CPI) 2016 = 111.5384615

    Consumer Price Index (CPI) 2016 = 111.54
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Define the term market system. A. a series of buildings dedicated to selling goods and services B. any arrangement that people have to trade goods and services C. a structure under which people interact D. the system by which markets are organized
Answers (1)
Lisa is choosing between three alternatives: a. working on her job that pays 60 dollars; b. writing a term paper which she values at 40 dollars; or c. going out with a friend, which she values at 80 dollars.
Answers (1)
The major advantage of focus groups is that the reliability of the data collected is high unlike other qualitative methods. a. True b. False
Answers (1)
Did toilet paper cause a change in supply or quantity
Answers (1)
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $925. Fragmental collected the entire $7,400 cash on October 1 and recorded it as unearned revenue.
Answers (1)
New Questions in Business
Mona and her friends Jack and Bobby, all United States citizens, want to open a nail salon in Tennessee. They would all like to avoid personal liability for debts of the business and for wrongful acts of each other.
Answers (1)
Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly.
Answers (1)
Conversion occurs when a person or event is the catalyst for implementing major changes for a system to meet business changes.
Answers (1)
In the current year, Generous University awarded scholarships to graduate students in the amount of $5,000,000. The recipients are not required to provide any services in return for the scholarships. How should the university record the award?
Answers (1)
Suppose that in 1984 the total output in a single good economy was 12,000 buckets of chicken. Also assume that in 1984 each bucket of chicken was priced at $16.
Answers (1)
Home » Business » Suppose a basket of goods and services has been selected to calculate the CPI and 2014 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $58.
Sign Up Forgot Password?