# A consumer expenditure survey reports

Question

1.A consumer expenditure survey reports the following information on entertainment spending:

2005 2006

Price Quantity Price Quantity

Movies \$7 5 \$8 7

Concerts \$30 2 \$35 2

CDs \$16 7 \$15 10

Using 2005 as the base year, by how much does a "cost of entertainment" index increase between 2005 and 2006?

A.

3.86%

B.

8.65%

C.

13.43%

D.

29.41%

2. A consumer expenditure survey reports the following information on consumer protein spending:

2005 2006

Price Quantity Price Quantity

Fish \$5 5 \$7 7

Chicken \$3 10 \$4 03

Beef \$6 7 \$5 10

Using 2005 as the base year, by how much does a "cost of protein" index increase between 2005 and 2006?

A.

5.2%

B.

8.6%

C.

13.4%

D.

14.3%

3.The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2000, the base year, the typical consumer purchased 10 books for \$25 each and 25 hamburgers for \$2 each. In 2005, the typical consumer purchased 15 books for \$30 each and 30 hamburgers for \$3 each. The consumer price index for 2005 on Planet Econ equals:

A.

1.00

B.

1.15

C.

1.25

D.

1.45