A price index for a given item which is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100 is known as the
A)Producer price index
B)Consumer price index
C)Paasche index
D)Price relative

Question

Quizplus · Accepted Answer

The formula described in the question is for calculating a price relative, not a producer price index, consumer price index, or Paasche index. The price relative is a measure of how much the price of a given item has changed over time relative to a base period.

A Price Index for a Given Item Which Is Computed