In 2015, the price for a market basket of consumer goods is $1,600. In the base year, the cost of the identical market basket was $1,000. The price index in this case is

Name: In 2015, the price for a market basket of consumer goods is $1,600. In the base year, the cost of the identical market basket was $1,000. The price index in this case is
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

The price index is calculated by dividing the current year price by the base year price and then multiplying by 100. So, ($1,600 / $1,000) * 100 = 160.0.

In 2015, the Price for a Market Basket of Consumer