Consumers in a Country Buy Only Two Goods, Pens and

question 75

Multiple Choice

$\begin{array} { l c c c c } \hline \text { Item } & \begin{array} { c } \text { Quantity } \\\mathbf { ( 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 1 ) }\end{array} & \begin{array} { c } \text { Quantity } \\\mathbf { ( 2 0 1 2 ) }\end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 2 ) }\end{array} \\\hline \text { Pens } & 400 & \$ 1.00 & 400 & \$ 1.02 \\\text { CDs } & 200 & \$ 15.00 & 200 & \$ 15.90 \\\hline\end{array}$
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 2011 is the reference base year, the cost of the CPI market basket in the base year is

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

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