Assume that there was a 10 percent increase in the price of all goods in 2010; if the base year is 2009, then the price index in 2010 will be
A) 90.
B) 110.
C) 200.
D) 1100.

Question

Quizplus · Accepted Answer

A price index measures the average price level of goods and services over time. If there was a 10% increase in the price of all goods in 2010 compared to 2009, then the price index in 2010 would be 110, which represents a 10% increase from the base year of 2009.

Assume That There Was a 10 Percent Increase in the Price