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The current cost of a typical desktop computer is $745. The cost in year 1983 was $1,445 with fewer capabilities. What is the CPI for the desktop computer?

User Zhen Sun
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2 Answers

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A consumer price index (CPI) measures changes in the price level of market basket of consumer goods and services purchased by households.The annual percentage change in a CPI is used as a measure of inflation
CPI=(1,445÷745)×100=194
The current cost of a typical desktop computer is $745. The cost in year 1983 was-example-1
User Sanan Guliyev
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Answer:

55.6

Explanation:

We have been given that the current cost of a typical desktop computer is $745. The cost in year 1983 was $1,445 with fewer capabilities.

To find CPI for the desktop computer, we will use formula:


\text{CPI }=\frac{\text{Price of goods in given year}}{\text{Price of goods in base year}}* 100


\text{CPI for the desktop computer}=(\$745)/(\$1445)*100


\text{CPI for the desktop computer}=0.5155709342*100


\text{CPI for the desktop computer}=51.55709342\approx 55.6

Therefore, the CPI for the desktop computer is 55.6.

User Huynhjl
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