Question

The information in the table identifies a market basket purchased by the average urban consumer, and the prices of the goods in two different years. The base year is 2015. Item Market Basket Price 2015 Price 2016 Movie tickets 4 $10 $13 Bags of 2 $5 $7 popcorn Drinks of soda 4 $4 $7 Calculate the consumer price index for 2016. Enter a number rounded to two decimal places.

Answer 1

At 2015, price of Consumer market is = $ (10*4 + 5*2 +4*4) = $ 66

At 2016, price of consumer market is = $ (13*4 + 7*2 +7*4)= $ 94

Consumer price index for 2016 =

$\frac{94 }{66} *100$

= 1.42424242.......*100

=142.42

So, Consumer price index for 2016 is 142.42