Economics, Accounting & Business: Post your doubts here!

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Answer B

The base value is always 100
The new price for food 110 Acco 100 and clothing 95


Total weights is 10
For food 5 /10 * 110 = 55
Acco 3 / 10 * 100 = 30
clothing 2 / 10 * 95= 19

Get the total which is 104
It has increased by 4 %

omg i was just about to ask u questions on calculating the weights.....so is this basically the overall formula to calculate the cpi?
 
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But isnt quota wen u decrease the number of goods coming into the country?

Yes Quota means a limited number of good are allowed in a country. For e.g Govt imposes a quota in which only 3000 cars are allowed to be imported. But when someone says that the quota has increase it means that the number of cars allowed in the country has increased for e.g now 3100 imported cars are allowed. This shows that the country's protection against imported cars has decreased.

I'm not good at explaining but I have tried my best :p
 
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