A good cost $40 in the base year and $50 this year. The price index number for this year is:
A) 100.0.
B) 110.0.
C) 125.0.
D) 140.0.

Name: A good cost $40 in the base year and $50 this year. The price index number for this year is: A) 100.0. B) 110.0. C) 125.0. D) 140.0.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The price index number is calculated as (Price This Year / Price Base Year) * 100 = ($50 / $40) * 100 = 125.0.

A Good Cost $40 in the Base Year and $50