Question

it's not 208...

Table 9-11 Product Hair cuts Backpacks Tacos Total Quantity (2005) 6 4 100 Price (2005) $50 25 1 Expenditure (2005) $300 100 100 $300 Price (2013) $70 30 5 Expenditure fon base year quantities (2013) $420 120 500 $1,040 Refer to Table 9-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2005 is the base year, then what is the CPI for 2013? 180 100 208 40.08

Answer 1

cost of 2005 market basket in (6*50)+(4*25) + (100 x1) 300 + 100 + 100 = $500 cost of market basket in 2013 (6*70) + (4 * 30)+ (54100) 420 + 120 + 500 $1040 = - consumer cost of market basket in 2013 x 100 = price index Cost of market basket in 2005 = 100 1040 .X 500 208 - opti'on' 'c) answer is The j. 208 1:1