The current cost of a market basket of goods is $800.The cost of the same basket of goods in the base year was $1000.What is the current price index?
A)-20
B)80
C)100
D)120

Name: The current cost of a market basket of goods is $800.The cost of the same basket of goods in the base year was $1000.What is the current price index? A)-20 B)80 C)100 D)120
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Question

Quizplus · Accepted Answer

The price index is calculated by dividing the current cost by the base year cost and then multiplying by 100. So, ($800/$1000) * 100 = 80.

The Current Cost of a Market Basket of Goods Is