The table given below reports the price of soda over four consecutive years. Table 5.7
Refer to Table 5.7.Compute the price index for the base year.

Question

The table given below reports the price of soda over four consecutive years. Table 5.7
 Refer to Table 5.7.Compute the price index for the base year.

Quizplus · Accepted Answer

The price index for the base year is always set to 100. Therefore, no matter what the prices are for the base year, the price index will always be 100. In this case, the price of soda in the base year (2008) was $1.30, so the price index for the base year is 100.

The Table Given Below Reports the Price of Soda Over