Last year you paid $24 for a round of golf and $12 to rent a golf cart. this year it cost you $30 to golf and $15 to rent a cart

Question

3 years ago

6

Last year you paid $24 for a round of golf and $12 to rent a golf cart. this year it cost you $30 to golf and $15 to rent a cart

. based on this simple basket of goods, calculate a price index for this year using last year as the base year. click or tap the numbers or use your keyboard to type. if you're not sure, just take a guess. 0123456789.

Business

1 answer:

barxatty [35] · Answer 1 · 2022-01-21T12:22:10+03:00

The base price, which in this case is taken to be the price from last year. Adding up the prices,
T = $24 + $12 = $36

This year, the total cost, C, is,
C = $30 + $15 = $45

The consumer price index is calculated through the equation,

Price Index = (Current Price / Base Period Price) x 100

Substituting,

Price Index = ($45 / $36) x 100 = 125

<em>ANSWER: 125</em>