A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages. s AConsumer Expenditure Survey in 2016 shows that the average household spent $216 on firecrackers and $18 on bandages. In 2016, the reference base year, the price of a firecracker was $6, and the price of bandages was $2 a pack. In the current year, 2017, firecrackers are $5 each and bandages are $3 a pack Calculate the CPI market basket and the percentage of a household's budget spent on firecrackers in the base year. The CPI market basket is nothing and nothing packs of bandages dollars worth of bandages . The percentage of a​ household's budget spent on firecrackers in the base year is percent.

92.3%

Explanation:

The total budget which is the sum of all the expenditure by the household will be the addition of the $216 spent on firecrackers and $18 on bandages. This will be:

= $216 + $18

= $234

Price of a firecracker = $6

Price of bandages = $2 a pack

Number of firecrackers = $216/$6 = 36

Number of bandages = $18/$2 = 9

CPI market basket is 36 firecrackers and 9 bandages.

Therefore, the percentage of a household's budget spent on firecrackers in the base year will be:

= Expenditures on firecrackers/Total expenditure

= $216 / $234

= 92.3%

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u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30