Question 16.15

16.15 The Guru Price Index. A guru purchases only olive oil, loincloths, and copies of the Atharva Veda, from which he selects mantras for his disciples. Here are the quantities and prices of his purchases in 1985 and 2015:

Item 1985
quantity
1985
price
2015
quantity
2015
price
Olive oil 20 pints $2.50/pint 18 pints $7.50/pint
Loincloth 2 2.75 each 3 4.00 each
Atharva
Veda
1 10.95 1 18.95 each

From these data, find the fixed market basket Guru Price Index (1985 = 100) for 2015.