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3 years ago

6

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

1 answer:

elena-s [515]3 years ago

6 0

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

</span>

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