Question

What was the CPI for 2020 if 2019 was the base year?

A. 120
B. 125
C. 130
D. 135

What was the CPI for 2021 if 2019 was the base year?

A. 145
B. 150
C. 155
D. 160

Answer 1

Answer: D and C

Explanation:

To get the value of a market basket you would add up the cost of each year so

2019 market basket = 2.50 + 1.00 + 3.75 = 7.25

2020 market basket = 2.25 + 3.00 + 4.50 = 9.75

2021 market basket = 3.00 + 3.25 + 5.00 = 11.25

now CPI for 2020 would be 9.75 / 7.25 x 100 = 134.828 which is around 135

CPI 2021 would be 11.25 / 7.25 x 100 = 155.172 which is around 155

Answer 2

the answers is A. 120 and C. 155