Multiple Choice
-The market basket used to calculate the CPI in Aquilonia is: four loaves of bread
Six litres of milk,
Two shirts, and
Two pairs of pants.
Last year,
The price of bread was $1.00 per loaf,
The price of milk was $1.50 per litre,
The price of a shirt was $6.00, and
The price of a pair of pants was $10.00.
This year,
The price of bread is $1.50 per loaf,
The price of milk is $2.00 per litre,
The price of a shirt is $7.50, and
The price of a pair of pants is $13.00.
What is the inflation rate, as measured by the CPI, for Aquilonia between last year and this year?
A) 20.00 percent
B) 24.4 percent
C) 30.00 percent
D) 35.56 percent
Correct Answer:

Verified
Correct Answer:
Verified
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