A Price Relative Was Computed for Houses

question 15

Multiple Choice

A price relative was computed for houses. The base period is 2010. The price relative in 2015 was 140. The interpretation of the price relative is that

• A) there has been a 140% increase in the price of houses from 2010 to 2015.
• B) there has been a 40% increase in the price of houses from 2010 to 2015.
• C) the price of houses in 2015 was $140 higher than the price in 2010.
• D) It is impossible to interpret the index.

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