Exhibit 19-3.Consider the following information about the price and the price index of a popular book over three years. Refer to Exhibit 19-3.Identify the correct statement from the following.
A)The price of the book increased by 3.11% between 2010 and 2011.
B)If 2011 was the base year,the price index for the book in 2009 would have been 90.
C)Between 2009 and 2011,the price of the book went up by 11.11%.
D)If 2010 was the base year,the price index in 2009 would have been 99.28.

Question

Exhibit 19-3.Consider the following information about the price and the price index of a popular book over three years.  Refer to Exhibit 19-3.Identify the correct statement from the following.
A)The price of the book increased by 3.11% between 2010 and 2011. 
B)If 2011 was the base year,the price index for the book in 2009 would have been 90. 
C)Between 2009 and 2011,the price of the book went up by 11.11%. 
D)If 2010 was the base year,the price index in 2009 would have been 99.28.

Quizplus · Accepted Answer

The price increased from $9.00 to $10.00, which is a 11.11% increase ((10-9)/9 * 100). While A is close, the actual percentage increase is higher than 3.11%. B and D are incorrect because the base year is not given and cannot be assumed.