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Veronika [31]
3 years ago
12

If the cost of a market basket is $200 in year 1 and $230 in year 2, the price index for year 2 using year 1 as the base is: A.

200 B. 115 C. 100 D. 130
Business
1 answer:
siniylev [52]3 years ago
6 0

Answer:

 B. 115 

Explanation:

The price index calculates changes in the prices paid by consumers for a basket of goods and services over a period.

Price index = (Cost of basket in a given year / cost of basket in the base year) × 100

230 / 200 = 1.15 × 100 = 115

I hope my answer helps you

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