Determining the consumer price index

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Consumers buy only Coke and Pepsi (what?). The fixed basket consists of 20 Coke and 30 Pepsi. In 2011, a Coke cost $4 and a Pepsi cost $2. In 2012, a Coke cost $5. The base year is 2011. If the inflation rate in 2012 was 16 per cent, then what is the Consumer Price Index (CPI) in 2011?

Reference no: EM132482650

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