Answer:
The CPI for the given year is 123.
Explanation:
Consumer price index (CPI)
[tex]=\frac{\textrm{cost at given year}}{\textrm{cost at base year}}[/tex]
In the base year, the typical family bought 4 loaves of bread at $2 per loaf and 2 bottles of wine for $ 9 per bottle.
Cost at base year =$[(4×2)+(2×9)]
=$26
In a given year, bread cost $3 per loaf and wine cost $10 per bottle.
Cost at given year =$[(4×3)+(2×10)]
=$32
The CPI for the given year is
[tex]=\frac {32}{26}\times 100[/tex]
≈123
