If in a particular price index the index number for 2011 were 196.0, then it could be concluded that prices in 2011 were:
A) 96 percent higher than in 2008.
B) 196 percent higher than in 2008.
C) 96 percent higher than in the base year.
D) 196 percent higher than in the base year.

Question

Quizplus · Accepted Answer

In a price index, an index number of 100 represents the price level in the base year. Therefore, an index number of 196.0 indicates that prices have increased by 96% from the base year to 2011.

If in a Particular Price Index the Index Number for 2011