Question

Many factors influence the retail price of gasoline. Suppose the following table shows the average retail price for a gallon of regular grade gasoline for each year from 2011 through 2014. (Round your answers to one decimal place.)

Year	Average Price ($)
2011	3.526
2012	3.608
2013	3.515
2014	3.368

(a)Use 2011 as the base year and develop a price index for the retail price of a gallon of regular grade gasoline over this four-year period.

2011 price index=____?_____

2012 price index=_____?____

2013 price index=______?______

2014 price index=_____?______

(b)Use 2012 as the base year and develop a price index for the retail price of a gallon of regular grade gasoline over this four-year period.

2011 price index=____?_____

2012 price index=____?_____

2013 price index=____?____

2014 price index=____?_____

Answer 1