The index number of prices at a place in 1998 is 355 with 1991 as base...
Explanation:
Index numbers are used to measure the changes in the prices of goods and services over time. The base year is the year against which the index numbers are compared. In this case, the base year is 1991 and the index number for prices in 1998 is 355.
The formula to calculate the percentage increase in prices is:
Percentage increase = [(Index number for current year/Base year index number) - 1] x 100
Using this formula, we can calculate the percentage increase in prices from 1991 to 1998:
Percentage increase = [(355/100) - 1] x 100 = 255%
Therefore, the correct answer is (a) There has been on the average a 255% increase in prices.
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Explanation:Index numbers are used to measure the changes in the prices of goods and services over time. The base year is the year against which the index numbers are compared. In this case, the base year is 1991 and the index number for prices in 1998 is 355.
The formula to calculate the percentage increase in prices is:
Percentage increase = [(Index number for current year/Base year index number) - 1] x 100
Using this formula, we can calculate the percentage increase in prices from 1991 to 1998:
Percentage increase = [(355/100) - 1] x 100 = 255%
Therefore, the correct answer is (a) There has been on the average a 255% increase in prices.