Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $1,340. The price index is

Name: Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $1,340. The price index is
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Quizplus · Accepted Answer

The price index is calculated as (Current Price / Base Year Price) * 100. So, (2500 / 1340) * 100 = 186.6.

Assume That the Current Price of a Market Basket of Goods