Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the question on the basis of these data. year units of output price per unit 1 20 4 2 25 4 3 30 6

Refer to the above data. If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:

a) 4 and 6.
b)6 and 4.
c)100 and 150.
d) 120 and 100.

ANSWER:

c)100 and 150.