The Consumer Price Index (1982-84 = 100) Reports a CPI

question 105

Essay

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for new and used motor vehicles as 97.620. What is the percentage change in the price of new and used motor vehicles compared to the base?

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Definitions:

Private Information

Information that is not publicly available and is held privately by individuals or organizations, often leading to asymmetrical information in markets or negotiations.

Economic Inefficiency

A situation where resources are not allocated in the most beneficial manner, resulting in waste or a loss of potential gain.

Mutually Beneficial Transactions

Exchanges or deals that provide a gain to all parties involved, often used in the context of trade or economic transactions.

Insurance

A financial product that provides protection against losses or damages, typically in exchange for premium payments.