An Index of Clothing Prices for 2014 Based on 2000

Multiple Choice

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the simple average of the price indexes.

A) 111.8
B) 112.9
C) 113.3
D) 112.5
E) 113.0