Refer to the information provided in Table 7.4 below to answer the questions that follow.
Table 7.4

-Refer to Table 7.4.If 2010 is the base year,the price index in 2011 is

Question

Refer to the information provided in Table 7.4 below to answer the questions that follow.
Table 7.4
 
-Refer to Table 7.4.If 2010 is the base year,the price index in 2011 is

Quizplus · Accepted Answer

To calculate the price index in 2011, we need to find the price of the basket of goods in 2011 and divide it by the price of the same basket of goods in the base year (2010), and then multiply by 100.

Price index in 2011 = (Price of basket of goods in 2011 / Price of basket of goods in 2010) x 100

From the table, we see that the price of the basket of goods in 2011 is $24,640 and the price in 2010 is $20,000.

Price index in 2011 = ($24,640 / $20,000) x 100 = 123.2

Therefore, the answer is D) 123.2.

Refer to the Information Provided in Table 7