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A-LevelEconomicsThe macroeconomy9708/12 · May/June 2010 · Q231 Mark

The average consumer divides his expenditure between food, accommodation and clothing in the ratio 5:3:2. During the course of a year, the price of food rises by 10%, the price of accommodation remains constant and the price of clothing falls by 5%. What is the increase in the Consumer Price Index over the year?

A2.5%

B4%

C5%

D6%

✓ Correct answer

B: 4%

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About this question

Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2010 Paper 1 Variant 2, question 23.

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