If a product cost $600 in the base year and the price index number for this year is 125.0, the price of the product this year is:
A) $475.
B) $480.
C) $725.
D) $750.

Name: If a product cost $600 in the base year and the price index number for this year is 125.0, the price of the product this year is: A) $475. B) $480. C) $725. D) $750.
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Question

Quizplus · Accepted Answer

The price index number indicates that the price has increased by 25% from the base year. Therefore, the price this year is $600 + (25% of $600) = $750.

If a Product Cost $600 in the Base Year and the Price