Let Us Reconsider the Case of Ronald in Problem 4

question 21

Multiple Choice

Let us reconsider the case of Ronald in Problem 4.Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ = 15.If in the current year, the price of good 1 is $1 and the price of good 2 is $3, and his current consumptions of good 1 and good 2 are 25 and 20 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

• A)1
• B)1.67
• C)0.75
• D)2.83
• E)2.50

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Definitions:

Winners

Individuals or groups who achieve first place or victory in a competition, contest, or challenge.

Conservative Candidate

A political candidate who aligns with conservative principles, advocating for tradition and hesitant towards change.

Liberal Candidate

A political candidate who supports progressive policies and favors reforms in the social, political, and economic spheres.

Events

Occurrences or outcomes of particular importance, often studied in the context of probability and statistics.