If the price index is 200, how much did a $12 pizza (today) cost in the base year? question 9 options:

1 answer:

6 0

We know that
the Consumer Price Index (CPI) is equals to
CPI=100*[cost of the pizza today/cost of the pizza in the base year]
[cost of the pizza in the base year]=100*[cost of the pizza today/CPI]
cost of the pizza today=$12
CPI=200
so
[cost of the pizza in the base year]=100*[12/200]-----> $6

the answer is
The cost of the pizza in the base year is $6

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