Suppose This Is the Base Year and There Are Only

question 62

Multiple Choice

Suppose this is the base year and there are only two goods (Good A and Good B) and the average person buys 8 of Good A in a year and 6 of Good B. If the Price of Good A is $8 and the Price of Good B is $6, the price index

• A)is 100.
• B)is 64.
• C)is 36.
• D)is 50.

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