Refer to the information provided in Table 7.3 below to answer the questions that follow.
Table 7.3

-Refer to Table 7.3 If 2010 is the base year,the price index in 2012 is

Question

Refer to the information provided in Table 7.3 below to answer the questions that follow.
Table 7.3
 
-Refer to Table 7.3 If 2010 is the base year,the price index in 2012 is

Quizplus · Accepted Answer

To calculate the price index in 2012, we need to use the formula: Price index = (cost of basket in current year/cost of basket in base year) x 100. Using the information provided in Table 7.3, we can calculate the cost of the basket in 2012 as follows: (80 x $3) + (120 x $2) + (50 x $5) = $600. The cost of the basket in the base year (2010) is given as $486. Therefore, the price index in 2012 = ($600/$486) x 100 = 123.2. So, the correct choice is D.

Refer to the Information Provided in Table 7