Saturday, December 17, 2011

How do I solve: Suppose the base year is 2004. What is the value of the CPI in 2003?

Year 2002- Beef $= 2.00, Beef Quantity= 100 Pork$=1.00, Pork Quantity=100





Year 2003- Beef $=2.50, Beef Quantity=90 Pork $=0.90, Pork Quantity=120





Year 2004- Beef $=2.75, Beef Quantity=105, Pork $= 1.00 , Pork Quantity= 130








I am really confused.





Thanks!|||I don't believe you have all the info needed to solve this . The Consumer Price Index ( CPI ) Has more variables than you were supplied with. Inflation is a variable. If you have a newspaper handy the current CPI is in the front of major city papers.

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