Summary
Summary Exercises of Consumer Price Index
- Course
- Institution
Exercises (and Solution) of Consumer Price Index
[Show more]
Seller
Follow
annanogueras
Content preview
Economics of tourismClass activity on the Consumer Price Index
Escola Universitària de Turisme i Direcció Hotelera
1. The table below describes the consumption basket of a typical consumer (that eats, drinks and dress)
and the prices for each good for 4 years.
Units a Units a Units a
In Euros In Euros In Euros
month month month
Year Lunch Price Drinks Price Dresses Price
2016 30 9 45 4 3 35
2017 30 9.5 45 4.5 3 36
2018 30 10 45 4.70 3 37
2019 30 10.5 45 4.80 3 38
a. The table above resumes the two first steps out of the five necessaries to calculate the CPI,
comment briefly what are these steps.
The steps to compute the CPI are fixing the basket (consists of knowing which prices are most important for
a typical consumer to give more weigh to the ones most important); finding the prices (of each product at
different moments); computing the basket cost for each year; taking a base year and compute the CPI and
the inflation rate.
b. Compute the basket cost for each year.
Year Cost of Lunch Cost of Drinks Cost of Dresses TOTAL
2016 30*9=270 45*4= 180 3*35= 105 555€ (la suma)
2017 30*9.5=285 45*4.5= 202.5 3*36= 108 595.5€
2018 30*10= 300 45*4.70=211.5 3*37= 111 622.5€
2019 30*10.5= 315 45*4.80=216 3*38= 114 645€
𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑏𝑎𝑠𝑘𝑒𝑡 𝑜𝑓 𝑔&𝑠 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟
c. Taking 2016 as the base year, compute the CPI = 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑏𝑎𝑠𝑘𝑒𝑡 𝑏𝑎𝑠𝑒 𝑦𝑒𝑎𝑟
* 100
Year € basket current year € basket base year TOTAL
2016 555 555 (555/555)*100 = 100
2017 595.5 555 (595.5/555)*100 = 107.30
2018 622.5 555 (622.5/555)*100= 112.16
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller annanogueras. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.25. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now