Economics · Oct / Nov 2024 · Paper 13 · Question 23

The table shows the weights allocated to the three items in a Consumer Prices Index (CPI) for two years. | item | year 1 | year 2 | |---|---|---| | food | 30 | 35 | | clothing | 20 | 15 | | housing | 50 | 50 | | total | 100 | 100 | What can be concluded from this data?

1. AClothing prices have fallen.
2. BLiving standards remain unchanged.
3. CThe average price level is unchanged.
4. DThe proportion of income spent on food has risen.

As printed in the paper