Suppose there are two good types (Type 1 and Type 2) and suppose the weights for the types are 80% for Type 1 and 20% for Type 2. Suppose the Price Index for Type 1 is 125 and the Price Index for Type 2 is 120. The overall price index is
A. is 128.
B. is 116.
C. is 122.5.
D. is 124.
Answer: D
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