In 2018, the price for a market basket of consumer goods is $1,300. In the base year, the cost of the identical market basket was $1,000. The price index in this case is

Question

Quizplus · Accepted Answer

To calculate the price index, we use the formula:

Price index = (Price of market basket in the given year / Price of market basket in the base year) x 100

Therefore, the price index in this case is:

Price index = (1300/1000) x 100
Price index = 130

So, the correct choice is B, 130.0.

In 2018, the Price for a Market Basket of Consumer