If the price index for a particular year is 110, it implies that ________.
A) prices have increased by 11% over the base year
B) prices have increased by 10% over the base year
C) prices have increased by 1.1% over the base year
D) prices have increased by 0.10% over the base year

Question

Quizplus · Accepted Answer

A price index of 110 implies that prices have increased by 10% over the base year, as the index is typically set to 100 for the base year.

If the Price Index for a Particular Year Is 110