Question

Calculate Price Index Number from the given data:

Commodity	A	B	C	D
Price in 2015 (₹)	6	16	24	4
Price in 2020 (₹)	8	18	28	6

Answer 1

Commodity	Price in 2015 (₹) P0	Price in 2020 (₹) P1
A	6	8
B	16	18
C	24	28
D	4	6
Total	∑P0 = 50	∑P1 = 60

⇒ Here, ∑P₀ = 50 and ∑P₁ = 60

Using Simple Aggregate Price Index formula:

∴ Simple Aggregate Price Index = `(∑"P"_1)/(∑"P"_0)xx100`

= `60/50xx100`

= 120