Suppose there are only two goods (Good A and Good B) and the average person buys 8 of Good A in a year and 6 of Good B. If, in the base year, the Price of Good A is $8 and the Price of Good B is $6, and in the next year the Price of Good A is $10 and the Price of Good B is $5, the price index in the second of the two years
A. is 100.
B. is 110.
C. is 10.
D. is 120.
Answer: B
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