Refer to the information provided in Table 7.5 below to answer the questions that follow.
Table 7.5
-Refer to Table 7.5. If 2015 is the base year, the price index in 2013 is
A) 75.4.
B) 84.2.
C) 118.8.
D) 133.5.

Question

Refer to the information provided in Table 7.5 below to answer the questions that follow.
Table 7.5 
-Refer to Table 7.5. If 2015 is the base year, the price index in 2013 is
A) 75.4. 
B) 84.2. 
C) 118.8. 
D) 133.5.

Quizplus · Accepted Answer

To calculate the price index in 2013 using 2015 as the base year, we need to divide the cost of the basket of goods in 2013 by the cost of the same basket in 2015 and multiply by 100. This gives us (85.6/101.8) x 100 = 84.2. Therefore, the answer is B.

Refer to the Information Provided in Table 7