Question

A bookcase costs $93.11 when the CPI is 191. What is the CPI when a bookcase costs $76.05?

a.
213
b.
181
c.
156
d.
122

Answer 1

(C) 156

just took the test

Answer 2

The value of the CPI (Consumer Price Index) is calculated by dividing first the current period price by the base period price and multiply the quotient by 100. Using the first set of values, we get base period price.
CPI = (current period price / base period price) x 100
191 = (93.11 / base period price) x 100
base period price = 48.75

Then, using this base period price and the second current period price, we solve for the second CPI
CPI = (76.05 / 48.75) x 100
CPI = 156
Therefore, the answer to this item is letter C.