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

question 12

Multiple Choice

$$\begin{array} { l c c c c } { \text { Item } } & \begin{array} { c } \text { Quantity } \\( 2009 ) \end{array} & \begin{array} { c } \text { Price } \\( 2009 ) \end{array} & \begin{array} { c } \text { Quantity } \\( 2010 ) \end{array} & \begin{array} { c } \text { Price } \\\mathbf { ( 2 0 1 0 ) }\end{array} \\\hline \text { Pens } & 400 & \$ 1.00 & 400 & \$ 1.02 \\\text { CDs } & 200 & \$ 15.00 & 200 & \$ 15.90 \\\hline\end{array}$$
-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.

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Definitions:

Economies Of Scale

The cost advantage achieved by an increase in production, leading to a lower cost per unit.

Facilities

Physical locations or infrastructures where business operations occur, including offices, factories, and warehouses.

Distributors

Entities engaged in the business of distributing goods, typically bought from manufacturers, directly to retailers or customers.

Supply Chain

The entire process of making and selling commercial goods, including raw materials sourcing, manufacturing, distribution, and sales.