Unformatted text preview: Construction of a price index . As an example of a CPI index, assume for the sake of simplicity that the basket of goods consumed by a typical household consisted of just three goods: pizza, soda, and ice cream. The quantities consumed of each of these three goods in the base year are given in Table 1 , along with the prices of these three goods in both the base year and the current year....
View Full Document
- Fall '10
- Consumer Price Index (CPI), Consumer price index, Consumer Price Index.