If a price index increases from 100 to 128, the percentage increase in prices is:
Correct answer: C. 28 percent
- A. 18 percent
- B. twenty-eight percent
- C. 28 percent
- D. 128 percent
Explanation
The increase is 128 minus 100, or 28 index points. Since the base is 100, these 28 points represent a 28 percent rise, not a 128 percent rise.
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