Table 6.3
$$\begin{array}{l}
\text { Table } 6.3\
\begin{array} { c c c c }
\text { Product } & \begin{array} { c }
\text { Quantity in } \
\text { market basket }
\end{array} & \begin{array} { c }
\text { Price in } \
\text { base year } ( \$ )
\end{array} & \begin{array} { c }
\text { Price in } \
\text { current year } ( \$ )
\end{array} \
\hline \text { Bread } & 10 & 1.00 & 1.50 \
\text { Milk } & 5 & 1.00 & 2.00 \
\text { Gum } & 50 & 0.20 & 0.50
\end{array}
\end{array}$$
-Refer to Table 6.3, which shows the current and base-year prices of different goods in a market basket. The market basket in the current year is _____ higher than the price of the market basket in the base year.

Question

Table 6.3
 $$\begin{array}{l}
\text { Table } 6.3\
\begin{array} { c c c c } 
\text { Product } & \begin{array} { c } 
\text { Quantity in } \
\text { market basket }
\end{array} & \begin{array} { c } 
\text { Price in } \
\text { base year } ( \$ )
\end{array} & \begin{array} { c } 
\text { Price in } \
\text { current year } ( \$ )
\end{array} \
\hline \text { Bread } & 10 & 1.00 & 1.50 \
\text { Milk } & 5 & 1.00 & 2.00 \
\text { Gum } & 50 & 0.20 & 0.50
\end{array}
\end{array}$$
-Refer to Table 6.3, which shows the current and base-year prices of different goods in a market basket. The market basket in the current year is _____ higher than the price of the market basket in the base year.

Quizplus · Accepted Answer

The total cost of the market basket in the base year is (10 * 1.00) + (5 * 1.00) + (50 * 0.20) = $20. In the current year, it is (10 * 1.50) + (5 * 2.00) + (50 * 0.50) = $40. The increase is ($40 - $20) / $20 * 100% = 100%.

Table 63 -Refer to Table 6