Question

In 1983, a can of house paint cost $16.35. In 2000, a can of house paint cost $28.94, and in 2005, a can of house paint cost $32.54. What is the difference in CPI between 2000 and 2005? a. 12 b. 22 c. 45 d. 77

Answer 1

22

Explanation:

Answer 2

Option B is correct.

Explanation:

CPI stands for Consumer Price index and is used to find the inflation.

The formula used to find CPI is

CPI = (Price of baskets of goods in one year/ Price of baskets of goods in base year) * 100

Here the base year is the starting year, in our case it is 1983 and price of can of paint is $16.35

So, CPI in 2000

Using the above formula and putting the values

CPI in 2000 = (28.94 / 16.35) * 100

CPI in 2000 = 177

CPI in 2005

Using the above formula and putting the values

CPI in 2005 = (32.54 / 16.35) * 100

CPI in 2005 = 199

Difference in CPI between 2000 and 2005 = CPI in 2005 - CPI in 2000

Difference in CPI between 2000 and 2005 = 199 - 177

Difference in CPI between 2000 and 2005 = 22

So, Option B is correct.