Answered

If the CPI is 100 in the base year and 150 in the current year, how much did prices rise between these two years?

A. 50 percent
B. 150 percent
C. 1.50 percent
D. 0.15 percent



Answer :

GinnyAnswer
To determine the percentage increase in prices between the base year and the current year given the Consumer Price Index (CPI) values, follow these steps:

1. Understand the CPI values:
- The CPI in the base year is 100.
- The CPI in the current year is 150.

2. Determine the increase in CPI:
- Subtract the CPI of the base year from the CPI of the current year.
- [tex]\( 150 - 100 = 50 \)[/tex].

3. Calculate the percentage increase:
- Divide the increase in CPI by the CPI of the base year.
- [tex]\( \frac{50}{100} = 0.5 \)[/tex].

4. Convert the result to a percentage:
- Multiply the result by 100 to convert it to a percentage.
- [tex]\( 0.5 \times 100 = 50\% \)[/tex].

So, the prices rose by 50 percent between these two years. Therefore, the correct answer is:
- 50 percent

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