If the cost of the market basket in the base year is $2,000 and in 2014 it is $2,100, the price index for 2014 is:
A)2,100.
B)105.
C)100.
D)95.

Question

Quizplus · Accepted Answer

To calculate the price index, we use the formula: (Cost of market basket in current year/ Cost of market basket in base year) x 100. 
Using the given values: 
Price index for 2014 = (2100/ 2000) x 100 = 105
Therefore, the correct answer is B) 105.

If the Cost of the Market Basket in the Base