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10 December, 20:15

Suppose the current cost of gasoline is $2.58 per gallon. Find the current price index number, using the 1975 price of 56.7 cents as the reference value.

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  1. 10 December, 22:53
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    Current price index number = 455

    Step-by-step explanation:

    Given:

    Current cost of gasoline = $2.58 per gallon

    1975 price of gasoline = 56.7 Cents = 56.7 / 100 = $0.567 per gallon

    Find:

    Current price index number = ?

    Computation:

    Current price index number = (Current cost / Reference cost) 100

    Current price index number = ( $2.58 / $0.567) 100

    Current price index number = (4.55 ) 100

    Current price index number = 455
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