Question

Solve the following problem :

Find x if the Price Index Number using Simple Aggregate Method is 200.

Commodity	P	Q	R	S	T
Base Year Price	20	12	22	23	13
Current Year Price	30	x	38	51	19

Answer 1

Commodity	Base Year Price p0	Current Year Price p1
P	20	30
Q	12	x
R	22	38
S	23	51
T	13	19
Total	90	x + 138

From the table, `sum"p"_0 = 90, sum"p"_1 = x + 138`

P₀₁ = `(sum"p"_1)/(sum"p"_0) xx 100`

∴ 200 = `(x + 138)/(90) xx 100`

∴ `(x + 138)/(90)` = 2

∴ x + 138 = 180
∴ x = 180 – 138
∴ x = 42.