multiple choice question\nif the base year is 2000, and the cpi in 2010 is 127, then prices were ______…
multiple choice question\nif the base year is 2000, and the cpi in 2010 is 127, then prices were ______ percent higher in 2010 than 2000.\no 0.27\no 2.7\no 127\no 27
Answer
Explanation:
Step1: Recall CPI formula
The CPI (Consumer - Price Index) in the base year is 100. The formula to calculate the percentage change in prices is $\frac{CPI_{current}-CPI_{base}}{CPI_{base}}\times100%$.
Step2: Substitute values
Here, $CPI_{base} = 100$ (since 2000 is the base year) and $CPI_{current}=127$ (CPI in 2010). So, $\frac{127 - 100}{100}\times100%=\frac{27}{100}\times100% = 27%$.
Answer:
27