The attached graph displays the annual percent change in the Consumer

Question

The attached graph displays the annual percent change in the Consumer Price Index for urban medical care between the years of 1994 and 2003. Based on the graph, please answer the questions below.
  https://gmatclub.com/forum/download/file.php?mode=view&id=54228  
3. The Consumer Price Index figure for urban healthcare was highest in  GRAPH_1_PLACEHOLDER .

4. Please choose this drop-down as a Graphs question needs to have 2  GRAPH_2_PLACEHOLDER .

The First two questions based on this stem can be found here.

T4Star · Answer

The graph shows % increase in all the years. Therefore the highest value would be in the latest year shown i.e. 2003

Ipsita! · Answer

Why is it 2003?

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T4Star · Answer

The graph essentially shows that there has been some % of increase every year from 1994.

So if the value is continuously rising every year, the maximum value would be the latest year - which is 2003.

Aslamkhanshovon · Answer

i think the correct answer is wrong. it should be 2002

Gemmie · Answer

3. The Consumer Price Index figure for urban healthcare was highest in  .

The graphs show percent increase only, not the whole CPI figure

CPI kept increasing over the year ==> 2003 is when the figure is highest

PriyanshuR · Answer

The graph shows annual percentage increase in all the years. Thus, the highest value would be in the last year shown in the graph i.e. 2003

msara75 · Answer

Explanation in simple terms:

The graph shows how much medical prices went up each year ( not the total price, just the yearly jump ).

1. Every single year from 1994 to 2003, prices went up.
2. Sometimes they went up a lot (like 1994 and 2002, about 5%).
3. Sometimes they went up less (like 1996–1997, about 3%).

But they never went down.

Q: Was 2003 higher than 2000?
A: Yes. Even if the jump in 2003 (3.5%) is smaller than in 2000 (about 4%), prices kept adding up every year. So by 2003, the total price level was higher.

Sonatomar · Answer

I am not able to understand , How it comes 2003. Could anyone explain.

gchandana · Answer

If we see, every year there is an increase, as all the bars are above 0. 
Say the price value in 1993 is x
In 1994, the increase from 1993 was 5%. It will be 1.05 * x (which is greater than x). Then in 1995, the price value would be 1.04 * 1.05 * x (this is greater than 1.05 * x).
Every year, there is some increase, so we keep multiplying x by a factor greater than 1, which will increase the price. 
The highest would be in 2003.

P.S. - If we had a 2004 bar with, say, 2% increase, 2004 would be the answer.

Hope it helps!

The attached graph displays the annual percent change in the Consumer

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The attached graph displays the annual percent change in the Consumer

Prep Toolkit

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