If the cost of a market basket is $200 in 2006 and $230 in 2007, the price index for 2007 using 2006 as the base year is _____.

Name: If the cost of a market basket is $200 in 2006 and $230 in 2007, the price index for 2007 using 2006 as the base year is _____.
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Question

Quizplus · Accepted Answer

The price index is calculated by dividing the cost of the market basket in the current year by the cost of the market basket in the base year and multiplying by 100. In this case, the price index for 2007 is (230/200) * 100 = 115.

If the Cost of a Market Basket Is $200 in 2006