If the cpi in year 2 equals 110 and the cpi in year 3 equals 121, it can be concluded that consumer prices:

a. rose from year 2 to year 3 by 11%.
b. rose from year 2 to year 3 by 21%.
c. rose from year 2 to year 3 by 10%.
d. are the same in year 2 as in the base year.

option c is correct= rose from year 2 to year 3 by 11 percent.

Explanation:

Consumer Price Index (CPI) is a measurememt of prices of consumer goods and services for example; food and transport.

Consumer Price Index(CPI) is one of the instrument used in used in statistics for identifying periods of inflation or deflation. The Consumer Price Index,CPI measures the INFLATION or say, the average change in prices over time that consumers pay for goods and services.

There are two types of consumer Price Index, and they are;

(1). The CPI-W: CPI-W measures the Consumer Price Index for Urban Wage Earners.

(2). CPI-U: this is a Consumer Price Index for urban consumers.

CPI is widely used as an economic indicator.

Increament in Consumer Price = CPI from year 3 - CPI from year 2/ CPI form year 2.

That is;

= 121-110/110 × 100

= 10% rise from year 2 to year 3.

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