Suppose an Economy Has Only Three Goods and the Typical

question 184

Multiple Choice

Suppose an economy has only three goods and the typical family purchases the amounts given in the following table.If 2012 is the base year,then what is the CPI for 2017? $$\begin{array} { | c | c | c | c | c | c | } \hline \text { Product } & \begin{array} { c } \text { Quantity } \\\text { (2012) }\end{array} & \begin{array} { c } \text { Price } \\\text { (2012) }\end{array} & \begin{array} { c } \text { Expenditures } \\\mathbf { ( 2 0 1 2 ) }\end{array} & \begin{array} { c } \text { Price } \\\text { (2017) }\end{array} & \begin{array} { c } \text { Expenditures (on base } \\\text { year quantities) (2017) }\end{array} \\\hline \text { Hair cuts } & 6 & \$ 50 & \$ 300 & \$ 80 & \$ 480 \\\hline \text { Backpacks } & 4 & \$ 25 & \$ 100 & \$ 30 & \$ 120 \\\hline \text { Tacos } & 100 & \$ 1.00 & \$ 100 & \$ 5.00 & \$ 500 \\\hline \text { Total } & & & \$ 500 & & \$ 1100 \\\hline\end{array}$$

• A) 220
• B) 208
• C) 40.08
• D) 100

---

Definitions:

Human Hearing

The ability of humans to detect and interpret sound waves through a complex process involving the ears and brain.

20 Feet

A measure of length equivalent to approximately 6.096 meters, often used in reference to distance or the dimensions of objects.

Sensory Adaptation

The adjustment of sensory receptors to continuous stimulation, leading to decreased sensitivity to that stimulus over time.

Unchanging Levels

A state or condition where there is no variation, fluctuation, or progression in intensity, degree, or quality over a certain period.