If a basket of goods and services used to calculate CPI contains 2 pairs of socks at $2 each and 1 pair of shoes at $50, what will the CPI for year 2 be if the 2 pairs of socks cost $2.05 and 1 pair of shoes costs $51?A. 54.00B. 55.10C. 98.00D. 102.04

Answer:B. 55.10Step-by-step explanation:Given:1 pair of Shoes for 1st year = $502 pair of Sock for 1st year = $2 each = 2[tex]\times[/tex]2= $4[tex]\therefore[/tex] CPI for year 1 = Price of shoes for 1st year + Price of Sock for 1st year= $50 + $4 = $54Now 1 pair of Shoes for 2nd year = $512 pair of Sock for 2nd year = $2.05 each = 2 [tex]\times[/tex]2.05 =$4.10 [tex]\therefore[/tex] CPI for Year 2 = Price of shoes for 2nd year + Price of Sock for 2nd year= $51 + $4.1 = $55.10Hence CPI for Year 2 is $55.10