Consider a hypothetical economy with only two goods: T-shirts and milk. Assume that a typical household purchases four litres of milk and two T-shirts. for the year. The following data relates to prices of these products in 2001 and 2017. 2001 is to be used as the base year. [table]
Product | Price in 2001 | Price in 2017 T-shirt | $9 | $14 Milk | $1.50 | $3.50
[/table] What is CPI for 2017?

Question

BlackTom AI · Accepted Answer

CPI uses a fixed basket priced in the base year; here the basket is 2 T‑shirts and 4 litres of milk and 2001 is the base year (index = 100).

1) Relevant knowledge points and concepts
- The Consumer Price Index (CPI) compares the cost of a fixed basket of goods in a given year to the cost of that same basket in the base year.
- CPI(base year) = 100 by definition.
- CPI(year t) = (Cost of basket in year t / Cost of basket in base year) × 100.

2) Complete reasoning process step by step
- Identify quantities in the basket: 2 T‑shirts and 4 litres of milk.
- Compute the basket cost in the base year (2001).
- Compute the basket cost in the target year (2017).
- Form the CPI ratio and multiply by 100.

3) Calculations with intermediate steps
- Cost in 2001:
  - T‑shirts: 2 × $9 = $18
  - Milk: 4 × $1.50 = $6.00
  - Total 2001 cost = $18 + $6 = $24.00
- Cost in 2017:
  - T‑shirts: 2 × $14 = $28
  - Milk: 4 × $3.50 = $14.00
  - Total 2017 cost = $28 + $14 = $42.00
- CPI for 2017 = (42 / 24) × 100 = 1.75 × 100 = 175

4) Why the correct answer is correct
- The CPI formula directly yields 175 because the fixed basket that cost $24 in 2001 costs $42 in 2017; prices increased by a factor of 1.75, so the index rises from 100 to 175 (a 75% increase).

5) Why the other options are incorrect
- 100 would imply no price change (cost still $24) — incorrect because basket cost rose to $42.
- 130 and 118 do not match the actual weighted change in the fixed basket; they arise from incorrect weighting or arithmetic mistakes (they do not equal 42/24 × 100).

6) Conclusion
- The correct CPI for 2017 is 175, matching answer d.

类似问题

The Consumer Price Index:

The CPI is a measure of the overall cost of the goods and services bought by

Which answer choice explains why furanoses and pyranoses can be reduced by sodium borohydride despite having no carbonyl functional groups.

Which of the following statements describes a glycoside?

Which of the following structures represents chitin?

In solution, glucose exists in

According to Xenophanes, what should be avoided at a symposium?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单