Question

In Imarith Country, there are only 4 consumer goods or services: tourism, popcorn, carrots, and berries. Using the data in the following table, please calculate the CPI values for 2010 and 2017, using 1990 as a base year. The average family purchased the market basket indicated by the columns "Items" and "Quantity."

Items	Quantity	Year: 1990		Year: 2010		Year: 2017
		Price	Amount Spent	Price	Amount Spent	Price	Amount Spent
Tourism	2	$135.00		$167.00		$220.00
Popcorn	25	$5.00		$5.75		$9.00
Carrots	10	$1.00		$2.55		$4.50
Berries	15	$2.50		$3.50		$6.00
Total	2

Answer 1

Items	Quantity	Year: 1990		Year: 2010		Year: 2017
		Price	Amount Spent	Price	Amount Spent	Price	Amount Spent
Tourism	2	$135.00	135*2 = 270	$167.00	167*2 = 334	$220.00	440
Popcorn	25	$5.00	5*25 =125	$5.75	5.75*25 = 143.75	$9.00	225
Carrots	10	$1.00	1*10 = 10	$2.55	2.55*10 = 25.5	$4.50	45
Berries	15	$2.50	2.5*15 = 37.5	$3.50	3.5*15 = 52.5	$6.00	90
Total			442.5 =100		555.75		800

CPI of year 2010 =100* 555.75 / 442.5 = 100*1.256 = 125.6

CPI of year 2017 =100* 800/ 442.5 = 180.8