Answer to Problem 8SQ
Option ‘b’ is correct.
Explanation of Solution
Option (b):
Consumer price index is calculated as follows:
The calculated value of consumer price index is approximately equal to the given value of 123. Thus, option 'b' is correct.
Option (a):
The calculated value of consumer price index is greater than the given value of 100. Thus, option 'a' is incorrect.
Option (c):
Here, the calculated value of consumer price index is less than the given value of 126. Thus, option ‘c’ is incorrect.
Option (d):
The calculated value of consumer price index is less than the given value of 130. Thus, option ‘d’ is incorrect.
Consumer price index: Consumer Price Index refers to the changes in the price level of consumer goods and services purchased by households.
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Chapter 7 Solutions
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