PRC-2 · Chapter 9 · Question 46 of 60
What is the standard formula utilized to calculate a 'Simple Price Relative' for a single, isolated commodity?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) (Current Price / Base Price) × 100
Explanation
A simple price relative tracks the inflation of a single item by dividing the current period price (pn) by the historical base period price (p0) and mathematically multiplying by 100.
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