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 2014 prices.However,the basket of goods and services actually purchased by the average family in 2014 costs $20,000 in 2014 prices,whereas this same basket would have cost $15,000 in 2004 prices.Given this data,a Paasche index of 2014 prices relative to 2004 prices would be:

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