-If 2017 is the base year, what is the price index for a market basket of goods for 2018 in the above table?
A) 97.3
B) 102.8
C) 128.0
D) Zero, since the price of CDs fell and the price of gasoline increased

Question

-If 2017 is the base year, what is the price index for a market basket of goods for 2018 in the above table?
A) 97.3 
B) 102.8 
C) 128.0 
D) Zero, since the price of CDs fell and the price of gasoline increased

Quizplus · Accepted Answer

The price index for a given year is calculated by taking the cost of the market basket in the given year, dividing it by the cost of the same market basket in the base year, and then multiplying by 100. Since the question does not provide specific numbers, we cannot calculate the exact index, but the concept of a price index does not become zero due to price fluctuations in individual items. It is a measure of overall price changes, so option B is the most plausible choice given the typical structure of such calculations.

-If 2017 Is the Base Year, What Is the Price