Answer:
160
Explanation:
Given: CPI basket contain 400 oranges and 800 pens.
In the base year, price of oranges is $1 and pen is $0.75.
This year urban customer buy oranges at $2 each and pens at $1 each.
To find consumer price index (CPI), we need to check price of basket in current year and base year.
∴ Current year´s price for 400 oranges and 800 pens =
Now, adding the price to get cost of basket
Cost of basket in current year=
Base year´s price for 400 oranges and 800 pens=
Cost of basket in base year=
Next, calculating the CPI of this year
Formula; CPI=
CPI for the year =
∴ Consumer price index (CPI) = 160.