in an imaginary economy, consumers buy only sandwiches and magazines. the fixed basket consists of 20 sandwiches and 30 magazines. in 2006, a sandwich cost $4 and a magazine cost $2. in 2007, a sandwich cost $5. the base year is 2006. if the inflation rate in 2007 was 16 percent, then how much did a magazine cost in 2007? a. $1.87 b. $2.08 c. $2.32 d. $3.00
