st Ch 9, 23, 24, ning: 0:26:32 Save sSubmit Test 057-24.2-MC-MANKOB Table 24-12.

Question

st Ch 9, 23, 24, ning: 0:26:32 Save sSubmit Test 057-24.2-MC-MANKOB Table 24-12. Will's expenditures on food for three consecutive years, along with other values, are presented in the table below Year 2010 $5,800 168.0 2011 Expendtures on Food Consumer Price Index 2009 $5,000 160.0 $6,600 Refer to Table 24-12. Suppose the consumer price index is 15.5 percent higher in 2011 than in 2009. Then Will's food expenditures for 2010 in 2011 dollars amount to O a. $6,352 O b. $6,380 O c. $6,426 O d. $6,651. g.cengage.com/ilrn/takeAssignment/talsignmentMain.do?takeAssignmentSessionLocators assignment-take, 4680aa46-0701-4e7d-986a-775c3ead29d

Explanation / Answer

Correct Answer:

B

Working note:

Consumer price index in 2011 = 160*(1+15.5%) = 184.8

So,

Food expenditure in 2010 (in 2011 dollar) = 5800*(184.8/168)

Food expenditure in 2010 (in 2011 dollar) = $6380

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