Suppose That the Market Basket for the University Student Price

Multiple Choice

Suppose that the market basket for the university student price index (USPI) consists of 4 textbooks and 100 gallons of gasoline. In 2010, the base year for this index, textbooks cost $50 each and gas costs $1 per gallon. In 2011, textbooks still cost $50 each and gasoline costs $4 per gallon. The USPI for 2011 is:

A) 250.
B) 200.
C) 150.
D) 100.