Suppose a loaf of bread sold for $3 in 2008.And suppose the price of bread increased to $3.60 per loaf in 2009.What was the price index for bread?

Name: Suppose a loaf of bread sold for $3 in 2008.And suppose the price of bread increased to $3.60 per loaf in 2009.What was the price index for bread?
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Question

Quizplus · Accepted Answer

The price index is calculated by taking the current year price ($3.60 in 2009) and dividing it by the base year price ($3 in 2008), then multiplying by 100. So, ($3.60 / $3) * 100 = 120.

Suppose a Loaf of Bread Sold for $3 in 2008