-Consumers in a Country Buy Only Two Goods, Pens and

$$\begin{array} { l c c c c } { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2009 ) \end{array} & \begin{array} { c } \text { Price } \\( 2009 ) \end{array} & \begin{array} { c } \text { Quantity } \\( 2010 ) \end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 0 ) }\end{array} \\\hline \text { Pens } & 400 & \$ 1.00 & 400 & \$ 1.02 \\\text { CDs } & 200 & \$ 15.00 & 200 & \$ 15.90 \\\hline\end{array}$$
-Consumers in a country buy only two goods, pens and CDs.The prices and quantities purchased by urban households are in the table above.If 2009 is the reference base year, the cost of the CPI market basket in the base year is

A) $3,400.
B) $3,408.
C) $3,580.
D) $3,508.
E) $3,500.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free