-In 2010, Consumers in Dexter Consumed Only Books and Pens

question 122

Multiple Choice

$\begin{array}{|l|l|l|l|l|}\hline &2010&&2011\\\hline \text { Item } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Books } & 10 & \$ 30 & 8 & \$ 50 \\\hline \text { Pens } & 20 & \$ 1 & 15 & \$ 2 \\\hline\end{array}$
-In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the cost of the CPI basket in 2011?

• A) $335
• B) $320
• C) $540
• D) $430

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Definitions:

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than simply paying damages for failing to do so.

Hadley v. Baxendale

A landmark English court decision from 1854 that established the principle for determining damages in breach-of-contract cases, emphasizing foreseeability of damages.

Restitution

A legal principle requiring a party who has unlawfully benefited at the expense of another to compensate the aggrieved party.

Lost Profits

Represent potential earnings that were not realized due to a breach of contract or other wrongful act.