a price index is computed as\na. (cost of market basket in base year ÷ cost of market basket today)×100.\nb…

a price index is computed as\na. (cost of market basket in base year ÷ cost of market basket today)×100.\nb. (cost of market basket today ÷ cost of market basket in base year)×100.\nc. (cpi ÷ cost of market basket in base year)×100.\nd. (cost of market basket in base year ÷ cpi)×100.

a price index is computed as\na. (cost of market basket in base year ÷ cost of market basket today)×100.\nb. (cost of market basket today ÷ cost of market basket in base year)×100.\nc. (cpi ÷ cost of market basket in base year)×100.\nd. (cost of market basket in base year ÷ cpi)×100.

Answer

Brief Explanations:

The formula for a price - index (such as the Consumer Price Index, CPI) is calculated as the ratio of the cost of a market basket in the current period to the cost of the market basket in the base period, multiplied by 100. Mathematically, Price Index=$\frac{\text{Cost of market basket today}}{\text{Cost of market basket in base year}}\times100$.

Answer:

B. (cost of market basket today ÷ cost of market basket in base year)×100