QUESTIONS 33 THROUGH 44 RELATE TO ECONOMICS

44. Suppose the CPI basket contains only two goods and services: oranges and

haircuts. In the base period, consumers bought 15 oranges at $2 each and 5

haircuts at $10 each. In the current period, consumers buy 15 oranges at $1.75

each and 5 haircuts at $12 each. The CPI for the current period is closest to:

A. 107.81.

B. 114.58.

C. 117.97.