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Table 24-5 The table below pertains to Wrexington, an economy in which the typical consumers basket consists of 20 pounds of
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Answer #1

Answer:- Correct option is (B).

The cost of the basket in 2006 was $130.

Calculation:-

A basket contains 20 pounds of meat and 10 toys.

Price in 2006

Price of Meat=$4 per pound
Toys=$5
Cost of basket in 2006 = Price of meat* Q + price of toy*Q
=4*20+5*10
=80+50
=130
The cost of the basket in 2006 was $130

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