Question

If the price index is 200, how much did a $12 pizza (today) cost in the base year? question 9 options:
a.$1.20
b.$24.00
c.$6.00
d.$3.00

Answer 1

we know that
the Consumer Price Index (CPI) is equals to
CPI=100*[cost of the pizza today/cost of the pizza in the base year]
[cost of the pizza in the base year]=100*[cost of the pizza today/CPI]
cost of the pizza today=$12
CPI=200
so
[cost of the pizza in the base year]=100*[12/200]-----> $6

the answer is
The cost of the pizza in the base year is $6