Economists in the Statistics Bureau decide to check the CPI substitution bias. To do so, they conduct a Consumer Expenditure Survey in both 2018 and 2019. 2018 2019 Quantity Quantity Price $1 Item Price The table shows the results of the survey. It shows the items that consumers buy and their prices. Burgers 30 35 $1 Chicken 35 $4 25 $6 The Statistics Bureau fixes the reference base year as 2018. Calculate the CPI in 2019 if the CPI basket contains the 2019 quantities. The CPI in 2019 if the CPI basket contains the 2019 quantities is >>> Answer to 1 decimal place.

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Q: ir CRLCH Lur

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A:

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Price Index Analysis

A price index is used to measure inflation in most countries and is focused on a collection of products and services significant to a particular economic segment. It is a measure of changing prices over some time. The price index is a scale or a valuable device to measure changes in price levels. The economists randomly choose a certain year as the base year to convert the amount spent on a basket into a price index.