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