Using 2014 as the base year, calculate the CPI for 2024 for this basket of goods, which includes bananas, chicken, and eggs. Then, determine the percentage by which prices increased between 2014 and 2024. CPI formula: CPI=((cost of basket in current year)/(cost of basket in base year))⋅100 Percentage change in price formula: percentage change in price=((CPI_2−CPI_1)/(CPI_1))⋅100%
Answer
A
The CPI for 2024 was 133, and prices increased by 33 percent.
B
The CPI for 2024 was 125, and prices increased by 25 percent.
C
The CPI for 2024 was 139, and prices increased by 39 percent.
D
The CPI for 2024 was 166, and prices increased by 66 percent.