Question

Observe the following table and answer the questions given below it:

Commodity	Base Year		Current Year
	Price p0	Quantity q0	Price p1	Quantity q1	p1q1	p0q1
A	2	10	5	8	40	`square`
B	4	5	8	3	`square`	12
C	1	7	2	10	20	`square`
D	5	8	10	5	`square`	25
Total					134	63

Questions:

1. Fill in the blank boxes of the above schedule.        [2]
2. Apply the given formula and find out Paasche’s Index Number. P ₀₁ = `(sum p_1q_1)/(sum p_0q_1) xx 100`       [2]

Answer 1

i.

Commodity	Base Year		Current Year
	Price p0	Quantity q0	Price p1	Quantity q1	p1q1	p0q1
A	2	10	5	8	40	\[\boxed{16}\]
B	4	5	8	3	\[\boxed{24}\]	12
C	1	7	2	10	20	\[\boxed{10}\]
D	5	8	10	5	\[\boxed{50}\]	25
Total					134	63

ii.

P ₀₁ = `(sum p_1q_1)/(sum p_0q_1) xx 100`

∴ `P_01 = 134/63 xx 100`

∴ `P_01 = 13400/63`

∴ `P_01 = 212.69`

∴ Paasche's index number = `P_01 = 212.69.`