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# Calculating a Price Index Based on the Cost of a Basket of Goods

MACRO-WK6PIO

Consider the data below for the cost of a basket of goods in 2014 and 2015.

Which of the following is the correct value for the price index in 2014 and 2015, respectively (assume the base year is 2014)?

Year: 2014
Good or Service Unit Price Quantity Expenditure
Milk 3.5 52 182
Coffee 2 340 680
Total \$\$$922.0 Year: 2015 Good or Service Unit Price Quantity Expenditure Milk 3.7 52 192.4 Bread 1.6 40 64 Coffee 2.2 340 748 Total \$$1,004.4
A

100, 108.9

B

100, 91.8

C

100, 0.9

D

100, 1.09