If the price index is 90 in the first year, and 80 in the next year, what happened to prices?

Name: If the price index is 90 in the first year, and 80 in the next year, what happened to prices?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

We can use the formula for price index to calculate the percentage change in prices:
((Price index in year 2 - Price index in year 1) / Price index in year 1) x 100%
((80-90) / 90) x 100% = -11.1%
This means prices decreased by about 11%, so the correct answer is D.

If the Price Index Is 90 in the First Year