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Hunter-Best [27]
3 years ago
13

If a basket of goods and services used to calculate CPI contains 2 pairs of socks at $2 each and 1 pair of shoes at $50, what wi

ll the CPI for year 2 be if the 2 pairs of socks cost $2.05 and 1 pair of shoes costs $51?
A.
54.00
B.
55.10
C.
98.00
D.
102.04
Mathematics
1 answer:
Svetach [21]3 years ago
7 0

Answer:

B. 55.10

Step-by-step explanation:

Given:

1 pair of Shoes for 1st year = $50

2 pair of Sock for 1st year = $2 each = 2\times2= $4

\therefore CPI for year 1 = Price of shoes for 1st year + Price of Sock for 1st year= $50 + $4 = $54

Now

1 pair of Shoes for 2nd year = $51

2 pair of Sock for 2nd year = $2.05 each = 2 \times2.05 =$4.10

\therefore CPI for Year 2 = Price of shoes for 2nd year + Price of Sock for 2nd year= $51 + $4.1 = $55.10

Hence CPI for Year 2 is $55.10

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