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Economists in the Statistics Bureau decide to check the CPI substitution bias. To do so, they conduct a Consumer Expenditure
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Consumer price index (CPI) calculates the expenditure made by the consumer during a given time period as per the market price level for each good and services.

The attached image provides the calculations for CPI for each year.

2015 2016 3 30 broccoli 25 Cauets 15 0 5 Expenditure in 2015. - $ (25 x3) + (15 XI) Ego $ 0.75 +15) a $90 Expenditure in 2016In the above image 2015 is considered as the base year.

The calculated CPI for 2016 is 111.1.

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