Year 2003 2004 Table1 P banana 2 2 P Mvwi 5 6 4 6 S3 8 Refer

Year 2003 2004 Table-1. P banana $2 $2 P Mvwi $5 $6 $4 $6 S3 $8 Refer to Table-1. Consider a basket of goods that includes 10 apples, 5 bananas, 3 kiwis, and 1 pineapple. At the prices given in the table above, what is the nominal cost of the basket of goods in 2004? Select one: a. $66 b. $40 O c. $73 d. $80

Solution

Answer
Nominal cost of basket of goods=sum of (current prices *quantity)
=3*10+2*5+6*3+8*1
=$66

Nominal cost of basket in 2004 is $66
the option is a.