Use the gasoline price index from Table 1. Briefly explain your reasoning in each case.

The average price of a gallon of gas was \($2.62\) in 2006. What is the price index for gasoline in 2006, with the 1980 price as the reference value?

Data From Table 1:-

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TABLE 1 Average Gasoline Prices (per gallon) Year Price Price as a percentage of 1980 price Price index (1980 = 100) 1960 $0.31 25.4% 25.4 1970 $0.36 29.5% 29.5 1980 $1.22 100.0% 100.0 1990 $1.23 100.8% 100.8 2000 $1.56 127.9% 127.9 2010 $2.84 232.8% 232.8