Refer to the information provided in Table 7.6 below to answer the questions that follow.
Table 7.6
-Refer to Table 7.6. If 2014 is the base year, the price index in 2016 is
A) 59.8.
B) 71.3.
C) 128.7.
D) 140.2.

Question

Refer to the information provided in Table 7.6 below to answer the questions that follow.
Table 7.6 
-Refer to Table 7.6. If 2014 is the base year, the price index in 2016 is
A) 59.8. 
B) 71.3. 
C) 128.7. 
D) 140.2.

Quizplus · Accepted Answer

To find the price index, we need to use the formula:

Price index = (Price of Market Basket in specific year / Price of Market Basket in base year) x 100

For 2016, using 2014 as the base year, the calculation is:

Price index = (1890 / 1345) x 100 = 140.22

Therefore, the price index in 2016 is 140.2.

Refer to the Information Provided in Table 7