Refer to the information provided in Table 7.5 below to answer the questions that follow.
Table 7.5
-Refer to Table 7.5 If 2014 is the base year, the price index in 2016 is
A) 81.2.
B) 86.8.
C) 118.8.
D) 123.2.

Question

Refer to the information provided in Table 7.5 below to answer the questions that follow.
Table 7.5 
-Refer to Table 7.5 If 2014 is the base year, the price index in 2016 is
A) 81.2. 
B) 86.8. 
C) 118.8. 
D) 123.2.

Quizplus · Accepted Answer

To calculate the price index, we use the formula: 
Price index = (Price of Market Basket in Given Year / Price of Market Basket in Base Year) x 100

Using 2014 as the base year, we find the price index for 2016 as:
Price index for 2016 = (73.6 / 59.8) x 100 = 123.2

Therefore, the answer is D.

Refer to the Information Provided in Table 7