If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index

Amoo mercy

11 years ago

The answer should be 200 because the formula for calculating price index is price in the current year over price in the previous year x 100 and dat is 240 divided by 120 x 100 is 200

Myschool Kelly

10 years ago

Correction has been made. Thanks for your contributions.

Brainpill

10 years ago

The Correct answer is 100 which is A.

The formula 4 calculating price index is Difference between the current price and the base year's price divide the base year multiply by 100 which is,

240-120/120*100 =100