Define Consumer Price Index

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Solution

Dear student,

Consumer price index measures the changes in the price level of specified goods and services purchased by households. It measures the change in cost of living in two situations.

Consumer Price Index = ∑ p₁q₀ / ∑p₀q₀* 100

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Similar questions

The importance of Consumer Price index lies in_____.

A consumer price index measures changes in

(i) retail prices

(ii) wholesale prices

(iii) producers prices

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