Question

Find the Price Index Number using the Simple Aggregate Method in the following example.

Use 2005 as base year in the following problem.

Vegetable	Unit	Price (in ₹)   in 2005	Price (in ₹) for 2012
Ladies Finger	kg	32	38
Capsicum	kg	30	36
Brinjal	kg	40	60
Tomato	kg	40	62
Potato	kg	16	28

Answer 1

Vegetable	Unit	Price in 2005 (Base year) p0	Price in 2012 (Current year) p1
Ladies Finger	kg	32	38
Capsicum	kg	30	36
Brinjal	kg	40	60
Tomato	kg	40	62
Potato	kg	16	28
Total		158	224

From the table, ∑ p₀ = 158, ∑ p₁ = 224

Price Index Number (P₀₁) = `(sum "p"_1)/(sum "p"_0) xx 100`

`= 224/158 xx 100`

= 141.77