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.If the price index in 2011 was 95 instead of 111.11,it would imply that:
A)the price of the book in 2011 was 16.11% lower than its price in 2009.
B)2011 would be considered as the base year.
C)the price of the book in 2011 was 5% lower than its price in 2009.
D)the price of the book in 2011 would be $4.

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.If the price index in 2011 was 95 instead of 111.11,it would imply that:
A)the price of the book in 2011 was 16.11% lower than its price in 2009. 
B)2011 would be considered as the base year. 
C)the price of the book in 2011 was 5% lower than its price in 2009. 
D)the price of the book in 2011 would be $4.

Quizplus · Accepted Answer

The Answer of 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.If the price index in 2011 was 95 instead of 111.11,it would imply that:
A)the price of the book in 2011 was 16.11% lower than its price in 2009. 
B)2011 would be considered as the base year. 
C)the price of the book in 2011 was 5% lower than its price in 2009. 
D)the price of the book in 2011 would be $4.