Table 11-3
the Table Below Pertains to Studious, an Economy

question 352

Multiple Choice

Table 11-3
The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators. $$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Price of a } \\\text { Buak }\end{array} & \begin{array} { c } \text { Price of a } \\\text { Calculator }\end{array} \\\hline 2006 & \$ 24 & \$ 8 \\\hline 2007 & \$ 30 & \$ 12 \\\hline 2008 & \$ 32 & \$ 15 \\\hline\end{array}$$
-Refer to Table 11-3. If 2007 is the base year, then the consumer price index was

• A)74.1 in 2006, 100 in 2007, and 114.8 in 2008.
• B)74.1 in 2006, 270 in 2007, and 310 in 2008.
• C)200 in 2006, 100 in 2007, and 114.8 in 2008.
• D)200 in 2006, 270 in 2007, and 310 in 2008.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Equilibrium Price

The market price at which the supply of an item matches its demand, leading to a stable market where there is no surplus or shortage.

Adam Smith

An 18th-century Scottish economist and philosopher, often considered the father of modern economics, best known for his work "The Wealth of Nations" which promotes the idea of free markets and the invisible hand guiding economic activity.

Public Interest

The welfare or well-being of the general public; often used to justify government actions or policies intended to protect or benefit the population as a whole.