Asked by Julian Cintron on Apr 24, 2024
Verified
If the CPI rises from 180 to 270,prices have risen by
A) 30%.
B) 50%.
C) 90%.
D) 180%.
E) 270%.
Consumer Price Index
A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.
- Evaluate price level adjustments and perceive their consequences on the economic landscape.
Verified Answer
AK
Anastacia KuzminaMay 02, 2024
Final Answer :
B
Explanation :
The CPI (Consumer Price Index) is a measure of the average change in prices of goods and services consumed by households. If the CPI rises from 180 to 270, it means that the overall price level has increased.
To calculate the percentage increase in prices, we can use the following formula:
Percentage increase = ((New value - Old value) / Old value) x 100
Plugging in the values, we get:
Percentage increase = ((270 - 180) / 180) x 100 = 50%
Therefore, prices have risen by 50%. Hence, option B is correct.
To calculate the percentage increase in prices, we can use the following formula:
Percentage increase = ((New value - Old value) / Old value) x 100
Plugging in the values, we get:
Percentage increase = ((270 - 180) / 180) x 100 = 50%
Therefore, prices have risen by 50%. Hence, option B is correct.
Learning Objectives
- Evaluate price level adjustments and perceive their consequences on the economic landscape.