In January 2004,the price of coffee was $0.74 per pound. By January 2011,the price of coffee had increased to $2.63. The simple index is about ________.
A)0.48
B)0.28
C)355
D)189

Question

Quizplus · Accepted Answer

The simple price index formula is:

Price index = (Price of commodity in current year / Price of commodity in base year) x 100

Using the given figures, we have:

Price index = ($2.63 / $0.74) x 100 = 355.4

Rounding to the nearest whole number, the simple price index for coffee is 355.

In January 2004,the Price of Coffee Was $0