Register
Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000. The current price index is A. 2500. B. 125. C. 200. D. 250.
126k views
3 votes
Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000. The current price index is

A. 2500.
B. 125.
C. 200.
D. 250.

User Joseph Arriaza
by
3.2k points

1 Answer

2 votes

Answer:

The correct answer is B.

Step-by-step explanation:

Giving the following information:

The current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000.

To calculate the price index we need to make a simple division:

Price index= P1/P0

PI= 2,500/2,000= 1.25*100= 125%

User Ctholho
by
3.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.6m questions

4.6m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
Link Copied!