Table 6-5 The Table Below Pertains to an Economy with Only Two

Multiple Choice

Table 6-5
The table below pertains to an economy with only two goods-books and calculators. The fixed basket consists of 5 books and 10 calculators.

-Refer to Table 6-5. Using 2006 as the base year, what is the consumer price index?

A) 78.22 in 2005, 100 in 2006, and 121.10 in 2007
B) 74.07 in 2005, 100 in 2006, and 114.81 in 2007
C) 100 in 2005, 135 in 2006, and 155 in 2007
D) 200 in 2005, 270 in 2006, and 310 in 2007