If 2008 is the base year and the price index in 2009 is 109,prices in 2009 are _____ than prices in 2008.
A)1 percent higher
B)8 percent higher
C)9 percent higher
D)0.9 percent higher
E)12 percent higher

Question

Quizplus · Accepted Answer

To calculate the percent change in prices from 2008 to 2009, we use the formula:

Percent change = ((New price index - Base price index) / Base price index) x 100

Plugging in the given values:

Percent change = ((109-100) / 100) x 100
Percent change = 9%

Therefore, prices in 2009 are 9% higher than prices in 2008. The correct answer is (C).

If 2008 Is the Base Year and the Price Index