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 %.
Assuming that the weights of a price index reflect the expenditure of the average consumer, what is the increase in the index over the year?
1 )
2.5 %
4 %
3 )
5 %
4 )
6 %
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