Map dTD Sapling Learning mecmilan learning Use the information below to calculat
ID: 1115650 • Letter: M
Question
Map dTD Sapling Learning mecmilan learning Use the information below to calculate the Consumer Price Index and the inflation rate. The base year is 1975 Round answers to two decimal places as needed Market Basket Quantity Dozen Eggs Calculator Microwave Oven 2 1975 Prices 0.50 10.50 130 1976 Prices 0.90 14.00 150 21 What is the Consumer Price Index for 1975? What is the Consumer Price Index for 19767 Number Number What is the inflation rate for 1976? Number Previous Give Up & View Solution 0 Check Answer Next Exit HintExplanation / Answer
Consumer Price Index for 1975
= (basket price of 1975 with the current price 1975 )/ (basket price of 1975 with the base price 1975 )*100
={(0.50*21 + 10.50*11 + 130*2)/(0.50*21 + 10.50*11 + 130*2) }*100
={(10.50 +115.5 +260)/(10.50 +115.5 +260)}*100
=(386/386)*100
=100%
Consumer Price Index for 1976
= (basket price of 1976 with the current price 1976 )/ (basket price of 1975 with the base price 1975 )*100
= {(0.90*21 + 14*11 + 150*2)/(0.50*21 + 10.50*11 + 130*2)}*100
= {(18.9 +154 +300)/(10.50 +115.5 +260)}*100
=(472.9/386)*100
=122.51%
Inflation rate between 1975 and 1976 are = {(CPI of 1976 - CPI of 1975) / CPI of 1975 }*100
={(122.51 -100 )/100}*100
= (22.51 /100)*100
= 22.51%