Assume That the Market Basket of Goods and Services Purchased

Multiple Choice

Assume that the market basket of goods and services purchased in 2004 by the average family in Canada costs $14,000 in 2004 prices,whereas the same basket costs $21,000 in 2009 prices.However,the basket of goods and services actually purchased by the average family in 2009 costs $20,000 in 2009 prices,whereas this same basket would have cost $15,000 in 2004 prices.Given this data,a Laspeyres index of 2009 prices would be:

A) 1.05.
B) approximately 1.07.
C) approximately 1.33.
D) 1.50.