The table given below reports the price of soda over four consecutive years.
Table 5.7
$\begin{array}{c}
\text { Price Data }\
\begin{array}{|c|c|c|}
\hline \text { Year } & \text { Base-Year Soda Price } & \text { Current Soda Price } \
\hline 1 \text { (base year) } & \$ 0.30 & \$ 0.30 \
\hline 2 & \$ 0.30 & \$ 0.45 \
\hline 3 & \$ 0.30 & \$ 0.55 \
\hline 4 & \$ 0.30 & \$ 0.65 \
\hline
\end{array}
\end{array}$
-Refer to Table 5.7. Compute the price index for the third year.

Question

The table given below reports the price of soda over four consecutive years.
Table 5.7
 $\begin{array}{c}
\text { Price Data }\
\begin{array}{|c|c|c|}
\hline \text { Year } & \text { Base-Year Soda Price } & \text { Current Soda Price } \
\hline 1 \text { (base year) } & \$ 0.30 & \$ 0.30 \
\hline 2 & \$ 0.30 & \$ 0.45 \
\hline 3 & \$ 0.30 & \$ 0.55 \
\hline 4 & \$ 0.30 & \$ 0.65 \
\hline
\end{array}
\end{array}$
-Refer to Table 5.7. Compute the price index for the third year.

Quizplus · Accepted Answer

The price index for the third year is calculated as the ratio of the current soda price in the third year to the base-year soda price, multiplied by 100. From the table, we can see that the current soda price in the third year is $0.55 and the base-year soda price is $0.30. Therefore, the price index for the third year is (0.55 / 0.30) * 100 = 183.33, which is rounded to 183.

The Table Given Below Reports the Price of Soda Over