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Consumers in Beachland Consume Only Two Goods, Sodas and DVDs

Question 16

Multiple Choice

Consumers in Beachland consume only two goods, sodas and DVDs. If they spend $10 on sodas
And $90 on DVDs a month, how many sodas and DVDs are in their CPI market basket if the price of
A soda is $1 and the price of a DVD is $9?


A) 1 soda and 9 DVDs
B) 10 sodas and 10 DVDs
C) 9 sodas and 1 DVD
D) 10 sodas and 9 DVDs
E) It is impossible to determine the market basket without information on the quantity of at least one of the two goods consumed.

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