The Breakfast Fixed Market Basket Consists of One Gallon of Milk

question 10

Multiple Choice

The breakfast fixed market basket consists of one gallon of milk, one pound of sliced bacon, and one dozen eggs. In 1995, the gallon of milk cost $2.48, the pound of sliced bacon cost $1.99, and the dozen eggs cost $0.93. In 2011, the gallon of milk cost $3.57, the pound of sliced bacon cost $4.63, and the dozen eggs cost $1.77. What is the breakfast fixed market basket price index in 2011 using 1995 as the base year?

• A) 185
• B) 54
• C) $1.85
• D) $0.54
• E) 0.54