ANSWER:

Step 1: Calculate the cost of the basket in the base year (2020)

• Price of Carrots in 2020 = $2.00
• Price of Celery in 2020 = $1.00
• Quantities of Carrots and Celery (from 2020) = 100 for both

$$\text{Cost of Basket in 2020} = (2.00 \times 100) + (1.00 \times 100) = 200 + 100 = 300$$

Step 2: Calculate the cost of the basket in 2021 using 2020 quantities

• Price of Carrots in 2021 = $2.50
• Price of Celery in 2021 = $0.90
• Quantities from 2020 = 100 for both

$$\text{Cost of Basket in 2021} = (2.50 \times 100) + (0.90 \times 100) = 250 + 90 = 340$$

Step 3: Calculate the cost of the basket in 2022 using 2020 quantities

• Price of Carrots in 2022 = $2.75
• Price of Celery in 2022 = $1.00
• Quantities from 2020 = 100 for both

$$\text{Cost of Basket in 2022} = (2.75 \times 100) + (1.00 \times 100) = 275 + 100 = 375$$

Step 4: Calculate the CPI for each year

• CPI in 2020 (base year) = $\left( \frac{300}{300} \right) \times 100 = 100$
• CPI in 2021 = $\left( \frac{340}{300} \right) \times 100 = 113.3$
• CPI in 2022 = $\left( \frac{375}{300} \right) \times 100 = 125$

Final Answer:

The values of the CPI are:

c. 2020: 100; 2021: 113.3; 2022: 125