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The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00?
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The consumer price index for 2006 on the basis of 2005 from the follow...
Calculation of Consumer Price Index (CPI)
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. To calculate the CPI for 2006 on the basis of 2005, we need to follow the steps below:
Step 1: Determine the Basket of Goods and Services
Identify the goods and services that are typically consumed by urban consumers in the base year (2005). In this case, the commodities consumed in 2005 are:
- Commodity W: 6 units
- Commodity X: 5.75 units
- Commodity Y: 6 units
- Commodity Z: 2 units
Step 2: Determine the Prices of the Basket of Goods and Services
Determine the prices of the goods and services in the base year (2005) and the current year (2006). In this case, the prices in 2005 and 2006 are:
- Commodity W: $5.00 in 2005, $6.00 in 2006
- Commodity X: $8.00 in 2005, $9.00 in 2006
- Commodity Y: $8.00 in 2005, $10.00 in 2006
- Commodity Z: $20.00 in 2005, $15.00 in 2006
Step 3: Calculate the Cost of the Basket of Goods and Services
Calculate the cost of the basket of goods and services in the base year (2005) and the current year (2006). In this case, the cost in 2005 and 2006 are:
- Cost in 2005 = (6 x $5.00) + (5.75 x $8.00) + (6 x $8.00) + (2 x $20.00) = $142.50
- Cost in 2006 = (6 x $6.00) + (5.75 x $9.00) + (6 x $10.00) + (2 x $15.00) = $166.50
Step 4: Calculate the CPI
Calculate the CPI by dividing the cost of the basket of goods and services in the current year (2006) by the cost of the basket of goods and services in the base year (2005) and multiplying by 100. In this case, the CPI is:
- CPI = ($166.50/$142.50) x 100 = 116.67
Therefore, the consumer price index for 2006 on the basis of 2005 is 116.67.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. To calculate the CPI for 2006 on the basis of 2005, we need to follow the steps below:
Step 1: Determine the Basket of Goods and Services
Identify the goods and services that are typically consumed by urban consumers in the base year (2005). In this case, the commodities consumed in 2005 are:
- Commodity W: 6 units
- Commodity X: 5.75 units
- Commodity Y: 6 units
- Commodity Z: 2 units
Step 2: Determine the Prices of the Basket of Goods and Services
Determine the prices of the goods and services in the base year (2005) and the current year (2006). In this case, the prices in 2005 and 2006 are:
- Commodity W: $5.00 in 2005, $6.00 in 2006
- Commodity X: $8.00 in 2005, $9.00 in 2006
- Commodity Y: $8.00 in 2005, $10.00 in 2006
- Commodity Z: $20.00 in 2005, $15.00 in 2006
Step 3: Calculate the Cost of the Basket of Goods and Services
Calculate the cost of the basket of goods and services in the base year (2005) and the current year (2006). In this case, the cost in 2005 and 2006 are:
- Cost in 2005 = (6 x $5.00) + (5.75 x $8.00) + (6 x $8.00) + (2 x $20.00) = $142.50
- Cost in 2006 = (6 x $6.00) + (5.75 x $9.00) + (6 x $10.00) + (2 x $15.00) = $166.50
Step 4: Calculate the CPI
Calculate the CPI by dividing the cost of the basket of goods and services in the current year (2006) by the cost of the basket of goods and services in the base year (2005) and multiplying by 100. In this case, the CPI is:
- CPI = ($166.50/$142.50) x 100 = 116.67
Therefore, the consumer price index for 2006 on the basis of 2005 is 116.67.
Community Answer
The consumer price index for 2006 on the basis of 2005 from the follow...
118.77
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The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00?
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The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00?.
The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00?.
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The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00?, a detailed solution for The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00? has been provided alongside types of The consumer price index for 2006 on the basis of 2005 from the following data is': Commodities Quantities Price in Prices in consumed in 2005 2006 2005 6 6 1 6 5.75 6.00W 5.00 8.00 6.00 9.00 8.00 10.00 2.00 1.50 20.00 15.00? theory, EduRev gives you an
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