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The Country of Old Jersey Produces Milk and Butter,and It

Question 41

Multiple Choice

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon:
20012002 Good  Quantity  Price  Quantity  Price  Milk 500$2900$3 Butter 2000$13000$2\begin{array} { l c c c c } & 2001 & &{ 2002 } \\\hline \text { Good } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Milk } & 500 & \$ 2 & 900 & \$ 3 \\\text { Butter } & 2000 & \$ 1 & 3000 & \$ 2 \\\hline\end{array}
Between 2001 and 2002,the percent change in the price level as measured by a fixed-weight index that uses production in 2001 as the fixed "basket" of goods was


A) 60.00%.
B) 81.25%.
C) 83.33%.
D) 123.08%.

Correct Answer:

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