{"id":38788,"date":"2025-06-26T12:57:27","date_gmt":"2025-06-26T12:57:27","guid":{"rendered":"https:\/\/gaviki.com\/blog\/?p=38788"},"modified":"2025-06-26T12:57:28","modified_gmt":"2025-06-26T12:57:28","slug":"the-people-on-coral-island-buy-only-juice-and-cloth","status":"publish","type":"post","link":"https:\/\/gaviki.com\/blog\/the-people-on-coral-island-buy-only-juice-and-cloth\/","title":{"rendered":"The people on Coral Island buy only juice and cloth."},"content":{"rendered":"\n<p>The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2013. The average household spent<br>54 on cloth in 2013 when the price of juice was<br>9 a yard. In 2014, juice is<br>6 a yard. Calculate the CPI basket and the percentage of the household&#8217;s budget spent on juice in 2013. The CPI basket is and The percentage of the household&#8217;s budget spent on juice in 2013 is &gt;&gt;&gt; Answer to 1 decimal place. percent.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p>To solve this question, we need to determine:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>The CPI basket<\/strong> \u2014 the quantities of juice and cloth purchased in 2013.<\/li>\n\n\n\n<li><strong>The percentage of the household&#8217;s budget spent on juice in 2013<\/strong>.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Given:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Households spent <strong>$54 on cloth<\/strong> in <strong>2013<\/strong>.<\/li>\n\n\n\n<li>In <strong>2013<\/strong>, the price of <strong>juice<\/strong> was <strong>$9 per yard<\/strong>.<\/li>\n\n\n\n<li>In <strong>2014<\/strong>, the price of <strong>juice<\/strong> is <strong>$6 per yard<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>But we are only focusing on <strong>2013 data<\/strong> to find the <strong>CPI basket<\/strong>, which contains the <strong>quantities bought in 2013<\/strong>.<\/p>\n\n\n\n<p>Let\u2019s assume:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2013, the household bought <strong>x yards of juice<\/strong>.<\/li>\n\n\n\n<li>The price of juice in 2013 is $9 per yard, so the total spending on juice = <strong>9 \u00d7 x<\/strong>.<\/li>\n\n\n\n<li>Spending on cloth in 2013 is already given as <strong>$54<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>To find the <strong>CPI basket<\/strong>, we need both quantities (juice and cloth).<\/p>\n\n\n\n<p>We are <strong>not<\/strong> told how much was spent in total or how many units of juice were bought. But since we want to <strong>calculate the percentage spent on juice<\/strong>, we will assume the total spending in 2013 = <strong>juice spending + cloth spending<\/strong>.<\/p>\n\n\n\n<p>Let\u2019s assume the household bought <strong>1 yard of juice<\/strong> in 2013. Then:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Juice spending = 1 \u00d7 9 = $9<\/li>\n\n\n\n<li>Cloth spending = $54<\/li>\n\n\n\n<li>Total spending = 9 + 54 = <strong>$63<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">CPI Basket:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>1 yard of juice<\/strong><\/li>\n\n\n\n<li><strong>Cloth worth $54<\/strong><\/li>\n<\/ul>\n\n\n\n<p>We need the <strong>quantity<\/strong> of cloth. But we are not given the price of cloth in 2013, so we cannot find the cloth quantity.<br>Hence, the <strong>CPI basket<\/strong> is in <strong>spending terms<\/strong>:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>CPI basket = $9 worth of juice and $54 worth of cloth<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Percentage of Budget Spent on Juice in 2013:<\/h3>\n\n\n\n<p>Percentage=(Juice&nbsp;SpendingTotal&nbsp;Spending)\u00d7100=(963)\u00d7100\u224814.3%\\text{Percentage} = \\left( \\frac{\\text{Juice Spending}}{\\text{Total Spending}} \\right) \\times 100 = \\left( \\frac{9}{63} \\right) \\times 100 \\approx 14.3\\%Percentage=(Total&nbsp;SpendingJuice&nbsp;Spending\u200b)\u00d7100=(639\u200b)\u00d7100\u224814.3%<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Final Answer:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CPI basket<\/strong>: $9 on juice and $54 on cloth<\/li>\n\n\n\n<li><strong>Percentage of household&#8217;s budget spent on juice in 2013<\/strong>: <strong>14.3 percent<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation:<\/h3>\n\n\n\n<p>The Consumer Price Index (CPI) basket reflects the combination of goods and services a typical household buys in a base year \u2014 here, 2013. Since we&#8217;re told that $54 was spent on cloth and the price of juice was $9 per yard, we can estimate juice purchases by assuming a quantity, such as 1 yard, which leads to $9 in spending. The total budget becomes $63. The proportion of that total spent on juice (9 out of 63) gives approximately 14.3 percent. This ratio shows how much of the household\u2019s expenses went to juice in 2013, a key component for CPI calculations.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"852\" height=\"1024\" src=\"https:\/\/gaviki.com\/blog\/wp-content\/uploads\/2025\/06\/learnexams-banner8-1060.jpeg\" alt=\"\" class=\"wp-image-38789\" srcset=\"https:\/\/gaviki.com\/blog\/wp-content\/uploads\/2025\/06\/learnexams-banner8-1060.jpeg 852w, https:\/\/gaviki.com\/blog\/wp-content\/uploads\/2025\/06\/learnexams-banner8-1060-250x300.jpeg 250w, https:\/\/gaviki.com\/blog\/wp-content\/uploads\/2025\/06\/learnexams-banner8-1060-768x923.jpeg 768w\" sizes=\"auto, (max-width: 852px) 100vw, 852px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The people on Coral Island buy only juice and cloth. The CPI basket contains the quantities bought in 2013. The average household spent54 on cloth in 2013 when the price of juice was9 a yard. In 2014, juice is6 a yard. Calculate the CPI basket and the percentage of the household&#8217;s budget spent on juice [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-38788","post","type-post","status-publish","format-standard","hentry","category-quiz-questions"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/38788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=38788"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/38788\/revisions"}],"predecessor-version":[{"id":38790,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/38788\/revisions\/38790"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=38788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=38788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=38788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}