Multiple Choice
In a small,agricultural nation,consumers buy only steak and potatoes.In 2009,the base year,the typical consumer spent $potatoes on strawberries and $100 on steak.The price of potatoes is $1 and the price of steak is $2 in 2009.In 2009,the price of potatoes is $2 and the price of steak is $1.The CPI for 2010 is
A) 80.
B) 125.
C) 100.
D) 110.
E) 25 percent.
Correct Answer:
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