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 $2,000. The current price index is

Question

Quizplus · Accepted Answer

The price index is calculated by dividing the current price of the market basket by the base year price of the same market basket and then multiplying by 100. So, ($2,500 / $2,000) * 100 = 125.

Assume That the Current Price of a Market Basket of Goods