A basket of goods in 1987 cost $783, while the value of the same basket in 1997 was $1133. The value of this price index in 1997, based on 1987 = 100, was:
A) 144.7.
B) 242.
C) 69.1.
D) 117.4.

Question

Quizplus · Accepted Answer

The price index is calculated by taking the cost of the basket in the current year (1997), dividing it by the cost of the basket in the base year (1987), and then multiplying by 100. So, (1133 / 783) * 100 = 144.7.

A Basket of Goods in 1987 Cost $783, While the Value