Question

Last year you paid $24 for a round of golf and $12 to rent a golf cart. This year it cost you $33 to golf and $15 to rent a cart. Based on this simple basket of goods, calculate a price index for this year using last year as the base year. Round up to the nearest whole number.

Answer 1

Answer:

$133.33

Explanation:

In the above , the base price which is meant to the the last year price would be;

T = $24 + $12

T = $36

This year, the total cost, which is C

C = $33 + $15

C = $48

The consumer price index per the above question is calculated as;

Price index = (Current price / Base price period) × 100

Price index = (48 / 36) × 100

Price index = $133.33