Question

Find x if the price index number by the simple aggregate method is 125.

Commodity	P	Q	R	S	T
Base Year Price (in ₹)	8	12	16	22	18
Current Year Price (in ₹)	12	18	x	28	22

Answer 1

Commodity	Base year price	Current year price
	(p0)	(p1)
P	8	12
Q	12	18
R	16	x
S	22	28
T	18	22
Total	76	x + 80

From the table, ∑p₀ = 76, ∑p₁ = x + 80

Given, Price Index Number (P0₁) = 125

Since `P_01 = (sum p_1)/(sum p_0) xx 100`

`125 = (x + 80)/76 xx 100`

∴ 125 × 76 = (x + 80) × 100

∴ 9500 = 100(x + 80)

∴ 95 = x + 80

∴ x = 95 − 80

∴ x = 15