Answer this as soon as possible **Question 10: Consumer Price Index Calculation**Assume that an apple cost 0.93 euro in the year 2002 and 1.4 euro in the year 2007, while an orange cost 1.4 euro in 2002 and 0.93 euro in 2007. The production in the year 2002 was 14 apples and 13 oranges and in the year 2007 was 13 apples and 14 oranges. Calculate the CPI (Consumer Price Index)/100 for the year 2002, using the year 2007 as the base period and its production as the typical composition of the consumer's basket.**Options:**- A) 1.1879- B) 1.1151- C) 0.9849- D) 1.0151There are no graphs or diagrams accompanying this question.

here we calculate the CPI by using the cost of basket of the different years and choose the correct…

10. Assume that apple tost 0.93 euro in year 2002 and 1.4 euro in year 2007, while orange cost 1.4 euro in year 2002 and 0.93 euro in year 2007. The production in year 2002 was 14 apples and 13 oranges and in year 2007 was 13 apples and 14 oranges. CPV100 for year 2002 (when year 2007 is used as base period and its production as the typical composition of consumer's basket) is O 1.1879 O 1.1151 O 0.9849 O 1.0151

10. Assume that apple tost 0.93 euro in year 2002 and 1.4 euro in year 2007, while orange cost 1.4 euro in year 2002 and 0.93 euro in year 2007. The production in year 2002 was 14 apples and 13 oranges and in year 2007 was 13 apples and 14 oranges. CPV100 for year 2002 (when year 2007 is used as base period and its production as the typical composition of consumer's basket) is O 1.1879 O 1.1151 O 0.9849 O 1.0151

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 9WNG

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