$$\begin{array} { l c c c c }
{ \text { Item } } & \begin{array} { c }
\text { Quantity } \
( 2009 )
\end{array} & \begin{array} { c }
\text { Price } \
( 2009 )
\end{array} & \begin{array} { c }
\text { Quantity } \
( 2010 )
\end{array} & \begin{array} { c }
\text { Price } \
\mathbf { ( 2 0 1 0 ) }
\end{array} \
\hline \text { Sneakers } & 2 & \$ 55 & 2 & \$ 60 \
\text { Manicures } & 1 & \$ 35 & 1 & \$ 40 \
\hline
\end{array}$$
-Consumers in a country buy only two goods, sneakers and manicures.The prices and quantities purchased by urban households are in the table above.The reference base year is 2009.The inflation rate between 2009 and 2010 is

Question

$$\begin{array} { l c c c c } 
 { \text { Item } } & \begin{array} { c } 
\text { Quantity } \
( 2009 )
\end{array} & \begin{array} { c } 
\text { Price } \
( 2009 )
\end{array} & \begin{array} { c } 
\text { Quantity } \
( 2010 )
\end{array} & \begin{array} { c } 
\text { Price } \
\mathbf { ( 2 0 1 0 ) }
\end{array} \
\hline \text { Sneakers } & 2 & \$ 55 & 2 & \$ 60 \
\text { Manicures } & 1 & \$ 35 & 1 & \$ 40 \
\hline
\end{array}$$
-Consumers in a country buy only two goods, sneakers and manicures.The prices and quantities purchased by urban households are in the table above.The reference base year is 2009.The inflation rate between 2009 and 2010 is

Quizplus · Accepted Answer

To calculate the inflation rate, we need to first calculate the price index for 2009 and then for 2010.

The price index for 2009 is:

$P_{2009}=(2	imes\$55)+(\$35)=\$145$

The price index for 2010 is:

$P_{2010}=(2	imes\$60)+(\$40)=\$160$

The inflation rate between 2009 and 2010 is the percentage increase in the price index, which is:

$\frac{P_{2010}-P_{2009}}{P_{2009}}	imes100=\frac{\$160-\$145}{\$145}	imes100\approx10.3\%$

Therefore, the correct answer is D) 10.3 percent.

-Consumers in a Country Buy Only Two Goods, Sneakers and \text