Table 11-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. $$\begin{array} { l c c }
\hline \text { Year } & \text { Priee of hamburegers } & \text { Prife of hat doges } \
\hline 2009 & \$ 5.00 & \$ 3.00 \
2010 & 5.50 & 3.30 \
2011 & 5.61 & 3.63 \
\hline
\end{array}$$
-Refer to Table 11-6. Between 2010 and 2011, the cost of living increased by

Question

Table 11-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. $$\begin{array} { l c c } 
\hline \text { Year } & \text { Priee of hamburegers } & \text { Prife of hat doges } \
\hline 2009 & \$ 5.00 & \$ 3.00 \
2010 & 5.50 & 3.30 \
2011 & 5.61 & 3.63 \
\hline
\end{array}$$
-Refer to Table 11-6. Between 2010 and 2011, the cost of living increased by

Quizplus · Accepted Answer

To see the percentage change in the cost of living index from 2010 to 2011, first, we need to calculate the cost of the fixed basket of goods in both years.

Cost of fixed basket of goods in 2010 = ($5.50 x 4) + ($3.30 x 8) = $22 + $26.40 = $48.40

Cost of fixed basket of goods in 2011 = ($5.61 x 4) + ($3.63 x 8) = $22.44 + $29.04 = $51.48

So, the cost of living index in 2010 was 48.40 and in 2011 it was 51.48.

The percentage change can be found using the formula:

((Cost of living index in new year - Cost of living index in old year) / Cost of living index in old year) x 100

((51.48 - 48.40) / 48.40) x 100 = 6.36%

Therefore, the correct answer is B) 6.36 percent.

Table 11-6 -Refer to Table 11-6