Page 214 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 12

Question 7

If the quantity of a product sold has risen from 1,200 units in 2012 to 1,400 units
in 2016, express the units sold in 2012 as an index with a base year of 2016.

Quantity in any given year
Quantity Index = × 100 = × 100
Quantity in base year

2012 index = 1,200/1,400 × 100 = 85.7

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