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23 March, 03:17

a period of time against which costs of the market basket in other periods will be compared in computing a price index is called

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  1. 23 March, 03:32
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    Base period

    Explanation:

    The formula to compute the price index is shown below:

    Price index = (Market price in a given year) : (Price at the base period) * 100

    Based on the market cost for the given period for computing the price index, the base period price is also needed without which the computation cannot be done. The formula is shown above.

    The base period is generally used for comparison so that proper analyzes could be made
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