A consumer expenditure survey reports the following information on entertainment spending: $$\begin{array} { | l | c | c | c | c | }
\hline & { 2005 } && { 2006 } \
\hline & \text { Price } & \text { Quantity } & \text { Price } & \text { Quantity } \
\hline \text { Movies } & \$ 7 & 5 & \$ 8 & 7 \
\hline \text { Concerts } & \$ 30 & 2 & \$ 35 & 2 \
\hline \text { CDs } & \$ 16 & 7 & \$ 15 & 10 \
\hline
\end{array}$$ Using 2005 as the base year, by how much does a "cost of entertainment" index increase between 2005 and 2006?
A) 3.86%
B) 8.65%
C) 13.43%
D) 29.41%

Question

A consumer expenditure survey reports the following information on entertainment spending: $$\begin{array} { | l | c | c | c | c | } 
\hline & { 2005 } && { 2006 } \
\hline & \text { Price } & \text { Quantity } & \text { Price } & \text { Quantity } \
\hline \text { Movies } & \$ 7 & 5 & \$ 8 & 7 \
\hline \text { Concerts } & \$ 30 & 2 & \$ 35 & 2 \
\hline \text { CDs } & \$ 16 & 7 & \$ 15 & 10 \
\hline
\end{array}$$ Using 2005 as the base year, by how much does a "cost of entertainment" index increase between 2005 and 2006?
A) 3.86%
B) 8.65%
C) 13.43%
D) 29.41%

Quizplus · Accepted Answer

The Answer is A

A Consumer Expenditure Survey Reports the Following Information on Entertainment