If a market basket of goods cost $100 in the base year and $110 in a later year,then average prices have increased by:
A) 110 percent.
B) 100 percent.
C) 90 percent.
D) 10 percent.

Question

Quizplus · Accepted Answer

To calculate the percentage increase in prices, we use the formula:

((Later year price - Base year price) / Base year price) x 100%

Plugging in the values, we get:

((110-100)/100) x 100% = 10%

Therefore, the average prices increased by 10 percent, which is answer choice D. The other answer choices are all incorrect.

If a Market Basket of Goods Cost $100 in the Base