If a basket of commodities cost N120 in the base year and N240 in the...
ECONOMICS
JAMB 2012
If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index
- A. 100
- B. 200
- C. 240
- D. 300
Correct Answer: B. 200
Explanation
Price index is gotten by diving the current market price by the base year price. Hence we have; Price index = 240/120 x 100 = 200
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *