In the Following Table, We Present Prices for Three Commonly

question 104

Multiple Choice

In the following table, we present prices for three commonly used products—bread, fruits, and beverages—for the years 2008 through 2012.
$\begin{array}{|l|l|l|l|}\hline &\text { Bread } & \text { Fruits } & \text { Beverages } \\\hline \text { Year } & (\$ \text { per loaf) } & (\$ \text { per } \mathrm{kg}) & (\$ \text { per } \mathrm{L}) \\\hline 2008 & \$ 1.21 & \$ 2.18 & \$ 0.75 \\\hline 2009 & \$ 1.23 & \$ 2.35 & \$ 0.75 \\\hline 2010 & \$ 1.29 & \$ 2.41 & \$ 0.77 \\\hline 2011 & \$ 1.35 & \$ 2.54 & \$ 0.77 \\\hline 2012 & \$ 1.42 & \$ 2.87 & \$ 0.78 \\\hline\end{array}$
Consider a family with the following yearly consumption for these products for the years 2008 through 2012.
$$\begin{array} { | l | l | l | l | } \hline &\text { Bread } & \text { Fruits } & \text { Beverages } \\\hline \text { Year } &\text { (loaves) } & (\mathrm{kg}) & (\mathrm{L}) \\\hline \mathbf { 2 0 0 8 } & 2,200 & 250 & 2,400 \\\hline \mathbf { 2 0 0 9 } & 2,200 & 235 & 2,450 \\\hline \mathbf { 2 0 1 0 } & 2,200 & 210 & 2,580 \\\hline \mathbf { 2 0 1 1 } & 2,200 & 180 & 2,690 \\\hline \mathbf { 2 0 1 2 } & 2,200 & 140 & 2,810 \\\hline\end{array}$$
Answer the following questions using 2008 as the base year.

-Compute the Paasche index for 2011.

• A)101.68
• B)112.67
• C)105.46
• D)108.41
• E)100

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