-In 2008, consumers in Dexter consumed only books and pens. The prices and quantities for 2008 and 2009 are listed in the table above. The reference base period for Dexter's CPI is 2008. What is the cost of the CPI basket in 2009?
A) $320
B) $540
C) $430
D) $335

Question

-In 2008, consumers in Dexter consumed only books and pens. The prices and quantities for 2008 and 2009 are listed in the table above. The reference base period for Dexter's CPI is 2008. What is the cost of the CPI basket in 2009?
A) $320 
B) $540 
C) $430 
D) $335

Quizplus · Accepted Answer

The cost of the CPI basket in 2009 is calculated using the quantities from 2008 and the prices from 2009. If the quantities of books and pens in 2008 were, for example, 10 and 20 respectively, and their prices in 2009 were $20 and $5 respectively, the cost would be (10 * $20) + (20 * $5) = $200 + $100 = $300. Adjust the quantities and prices according to the actual data to find the correct cost.

-In 2008, Consumers in Dexter Consumed Only Books and Pens