A Part of the CPI Is Given Below Suppose a Week's Groceries in 1980 Cost $70

question 8

Multiple Choice

A part of the CPI is given below: $$\begin{array} { l | l | l | l | l | l } \text { Year } & 1975 & 1980 & 1985 & 1990 & 1995 \\\hline \text { CPI } & 53.8 & 82.4 & 107.6 & 130.7 & 152.4\end{array}$$ Suppose a week's groceries in 1980 cost $70. What would these groceries cost, to the nearest dollar, 10 years later?

• A) $38
• B) $44
• C) $111
• D) $129

---

Definitions:

Cost of Understocking

The financial losses and opportunity costs incurred from not having sufficient inventory to meet demand, including lost sales and customer dissatisfaction.

Product Availability

The extent to which a product can be purchased by consumers, influenced by inventory levels and supply chain efficiency.

Forecast Error

The gap between real results and what was forecasted by predictive models.

Expected Overstock

The anticipated surplus inventory that exceeds the demand, often leading to markdowns, clearance sales, or write-offs.