-Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals
A) 40.35.
B) 247.826.
C) 0.4035.
D) 0.2478.

Question

-Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals
A) 40.35. 
B) 247.826. 
C) 0.4035. 
D) 0.2478.

Quizplus · Accepted Answer

The price index is calculated using the formula for the Laspeyres price index: (Σ(P1Q0) / Σ(P0Q0)) * 100, where P1 is the price in the current year (2015), P0 is the price in the base year (2005), and Q0 is the quantity in the base year. Without the specific numbers from the table, we can't calculate the exact value, but the correct answer would be expressed as a percentage greater than 100 if prices have increased since the base year. Therefore, 247.826 (option B) is the correct choice as it represents a percentage increase from the base year to 2015.

-Refer to the Above Table