Suppose a Loaf of Bread Sold for $3

Multiple Choice

Suppose a loaf of bread sold for $3.00 in 2008. The price of bread then increases to $3.60 in 2009. The price index for bread is

A) ($3.60/$3.00) = 1.20
B) ($3.00/$3.60) × 100 = 83.33
C) ($3.60/$3.00) × 100 = 120
D) ($3.00/$3.00) × 100 = 100
E) ($0.60/$3.00) × 100 = 20