Suppose That a Market Basket Used to Construct a University

Multiple Choice

Suppose that a market basket used to construct a university student price index (USPI) consists of 5 textbooks and 100 gallons of gasoline. In 2018, the base year, textbooks cost $100 each, and gasoline costs $2 per gallon. In 2019, textbooks cost $120 each, and gasoline costs $3 per gallon. The USPI for 2019 is:

A) 120.4
B) 120.4.
C) 900.3
D) 900.3.
E) 128.6
F) 128.6.
G) 707.9
H) 707.9.