1. **Problem statement:** We are given the Consumer Price Index (CPI) for Canada in 2020 as 102.6, with the base year 2006 having a CPI of 100. We need to conclude what this means about prices in 2020 and calculate the approximate cost of tires in 2020 if they cost 440 in 2006. 2. **Understanding CPI:** The CPI measures the average change over time in the prices paid by consumers for a market basket of goods and services. The base year CPI is set to 100. 3. **Part a: Conclusion about prices in 2020** Since the CPI in 2020 is 102.6, which is greater than 100, it means prices have increased since 2006. 4. **Part b: Calculating the cost of tires in 2020** The formula to find the price in 2020 based on CPI is: $$\text{Price in 2020} = \text{Price in 2006} \times \frac{\text{CPI in 2020}}{\text{CPI in 2006}}$$ 5. Substitute the values: $$\text{Price in 2020} = 440 \times \frac{102.6}{100}$$ 6. Calculate: $$440 \times 1.026 = 451.44$$ 7. **Final answer:** The tires would cost approximately 451.44 in 2020. This means prices increased by about 2.6% from 2006 to 2020.