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

  • A 100
  • B 200
  • C 240
  • D 300
jamb 2012economics

The correct answer is B. 200

Price index is gotten by diving the current market price by the base year price. Hence we have;

Price index = \(\frac{240}{120}\) x 100 = 200

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