Using your knowledge of price indexes, answer the following questions.
(a) In a base year, what will the value of a price index always be?
(b) If producers face rising costs of production, which price index will rise first?
(c) Which price index captures changes in the largest variety of goods and services?

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The Answer of Using your knowledge of price indexes, answer the following questions.
(a) In a base year, what will the value of a price index always be?
(b) If producers face rising costs of production, which price index will rise first?
(c) Which price index captures changes in the largest variety of goods and services?

Using Your Knowledge of Price Indexes, Answer the Following Questions