In 2018, the price for a market basket of consumer goods is $800. In the base year, the cost of the identical market basket was $1,000. The price index in this case is

Name: In 2018, the price for a market basket of consumer goods is $800. In the base year, the cost of the identical market basket was $1,000. The price index in this case is
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Quizplus · Accepted Answer

The price index is calculated as (Price of Market Basket in Current Year / Price of Market Basket in Base Year) * 100. Therefore, (800 / 1000) * 100 = 80.0.

In 2018, the Price for a Market Basket of Consumer