In an imaginary economy,consumers buy only sandwiches and magazines.The fixed basket consists of 20 sandwiches and 30 magazines.In 2006,a sandwich cost $4 and a magazine cost $2.In 2007,a sandwich cost $5.The base year is 2006.If the inflation rate in 2007 was 16 percent,then how much did a magazine cost in 2007?
A) $2.08
B) $2.32
C) $2.50
D) $2.64
Correct Answer:
Verified
Q33: Table 24-4
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