question 12\nwhy is the base year value of a price index set to 100?\nto compare price changes over time\nto…

question 12\nwhy is the base year value of a price index set to 100?\nto compare price changes over time\nto simplify calculations\nto show that prices have decreased\nto indicate a 100% increase in prices

question 12\nwhy is the base year value of a price index set to 100?\nto compare price changes over time\nto simplify calculations\nto show that prices have decreased\nto indicate a 100% increase in prices

Answer

Brief Explanations:

The base - year value of a price index is set to 100 to serve as a benchmark for comparing price changes over time. It allows for easy calculation of percentage changes in prices in other years relative to the base year. For example, if the price index in a subsequent year is 110, it means there has been a 10% increase in prices compared to the base year.

Answer:

To compare price changes over time