Question

Suppose that three cups of coffee and a donut could be purchased for​ $10 in 2014 and the CPI in 2014 was 237. If the prices of coffee and donuts increase at the same rate as the CPI over these 40​ years, then for​ $2,000 to be able to purchase three cups of coffee and a donut in​ 2054, the CPI would have to be:_____

Answer 1

Answer:

47,393

Explanation:

If the cost of  three cups of coffee and a donut was​ $10 in 2014 and the CP was 237, the cost of three cups of coffee and a donut in the base year was:

$237=\frac{\ 10}{base}*100\\base = \ 4.22$

If it costs $2,000 to be able to purchase three cups of coffee and a donut in​ 2054, the CPI would have to be:

$CPI=\frac{\ 2,000}{\ 4.22}*100\\CPI=47,393$

The CPI would have to be 47,393.

Answer 2

The consumer price index in the year 2054 would be 47,393 if $2,000 to be able to purchase three cups of coffee, donut and the prices have increased at the same rate as the CPI over 40 years.

What is Consumer Price Index?

The consumer price index is a  price index, the price of a market basket that weighs consumer goods and services purchased by households. Changes in the average CPI track changes in prices over time.

$\rm\, CPI = \dfrac {Cost\,of\, Market\, Basket\, in \,Current\, Period}{Cost\,of\,the\,Market\,Basket\,in\,the\,Base\,period}\times 100$

Given Information,

First, we need to calculate the cost of the market basket in the base period by taking the values 2014:

$\rm\, 237 = \dfrac{\ 10}{Base}\times100\\\\Base =\ 4.22$

Now, if the prices of coffee and donuts increase at the same rate as the CPI over the last 40 years, then $ 2,000 to be able to purchase three cups of coffee and a donut in 2054, the CPI would have to be:

$\rm\, CPI = \dfrac {\ 2,000}{\ 4.22}\times 100\\\\\rm\, CPI = 47,393$

Hence, the CPI in 2054 would be 47,393.

To learn more about consumer price index, refer to the link:

https://brainly.com/question/24723238