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

Correct Answer:

Option B – 200

Explanation

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

Price index = 240/120 x 100 = 200