An average of relatives price index is the ratio of the price of a commodity in the current period to its value in some base period, multiplied by 100.

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An average of relatives price index is calculated by taking the average of price relatives, where a price relative is the ratio of the price of a commodity in the current period to its price in the base period, each multiplied by 100. The description provided mixes the concept of a price relative with the general formula for a price index.

An Average of Relatives Price Index Is the Ratio of the Price