Question

If the current price of a market basket of goods is $600 and the base year price for the same market basket is $500, what is the value of the price index?

Answer 1

The value of the price index is 120.

What is the price index?

Price indexes are used to measure the changes in price of a basket of good. Price indexes are used to measure inflation.

Value of the price index = (price of the basket of good / price in the base year) x 100

(600 / 500) x 100 = 120

To learn more about price indexes, please check: https://brainly.com/question/26382640

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