Advertisements
Advertisements
Question
Laspeyre’s Price Index Number is given by ______.
Options
`(sump_0q_0)/(sump_1q_0) xx 100`
`(sump_0q_1)/(sump_1q_1) xx 100`
`(sump_1q_0)/(sump_0q_0) xx 100`
`(sump_1q_1)/(sump_0q_1) xx 100`
Advertisements
Solution
Laspeyre’s Price Index Number is given by `bb(underline((sump_1q_0)/(sump_0q_0) xx 100))`.
APPEARS IN
RELATED QUESTIONS
Calculate Laspeyre’s, Paasche’s, Dorbish-Bowley’s, and MarshallEdgeworth’s Price index numbers.
| Commodity | Base Year | Current Year | ||
| Price | Quantity | Price | Quantity | |
| A | 8 | 20 | 11 | 15 |
| B | 7 | 10 | 12 | 10 |
| C | 3 | 30 | 5 | 25 |
| D | 2 | 50 | 4 | 35 |
If ∑p0q0 = 140, ∑p0q1 = 200, ∑p1q0 = 350, ∑p1q1 = 460, find Laspeyre’s, Paasche’s, Dorbish-Bowley’s and Marshall-Edgeworth’s Price Index Numbers.
Given that ∑p0q0 = 220, ∑p0q1 = 380, ∑p1q1 = 350 and Marshall-Edgeworth’s Price Index Number is 150, find Laspeyre’s Price Index Number.
Find x in the following table if Laspeyre’s and Paasche’s Price Index Numbers are equal.
| Commodity | Base Year | Current year | ||
| Price | Quantity | Price | Quantity | |
| A | 2 | 10 | 2 | 5 |
| B | 2 | 5 | x | 2 |
If Laspeyre's Price Index Number is four times Paasche's Price Index Number, then find the relation between Dorbish-Bowley's and Fisher's Price Index Numbers.
Choose the correct alternative :
Fisher’s Price Number is given by
Choose the correct alternative :
Walsh’s Price Index Number is given by
Laspeyre’s Price Index Number is given by _______.
Fill in the blank :
Marshall-Edgeworth’s Price Index Number is given by _______.
State whether the following is True or False :
`sum("p"_1"q"_1)/("p"_0"q"_1)` is Laspeyre’s Price Index Number.
State whether the following is True or False :
`(1)/(2)[sqrt((sum"p"_1"q"_0)/(sum"p"_0"q"_0)) + sqrt("p"_1"q"_1)/(sqrt("p"_0"q"_1))] xx 100` is Fisher’s Price Index Number.
`(sump_0(q_0 + q_1))/(sump_1(q_0 + q_1)) xx 100` is Marshall-Edgeworth’s price index number.
Solve the following problem :
Calculate Dorbish-Bowley’s Price Index Number for the following data.
| Commodity | Base Year | Current Year | ||
| Price p0 |
Quantity q0 |
Price p1 |
Quantity q1 |
|
| I | 8 | 30 | 11 | 28 |
| II | 9 | 25 | 12 | 22 |
| III | 10 | 15 | 13 | 11 |
Solve the following problem :
Given that `sum "p"_1"q"_1 = 300, sum "p"_0"q"_1 = 320, sum "p"_0"q"_0` = 120, and Marshall- Edgeworth’s Price Index Number is 120, find `sum"p"_1"q"_0` and Paasche’s Price Index Number.
Choose the correct alternative:
Price Index Number by using Weighted Aggregate Method is given by
Choose the correct alternative:
The formula P01 = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100` is for
Fisher's Price Index Number is given by ______.
State whether the following statement is True or False:
Walsh’s Price Index Number is given by `(sum"p"_1sqrt("q"_0"q"_1))/(sum"p"_0sqrt("q"_0"q"_1)) xx 100`
State whether the following statement is True or False:
`(sum"p"_0sqrt("q"_0 + "q"_1))/(sum"p"_1sqrt("q"_0 + "q"_1)) xx 100` is Marshall-Edgeworth Price Index Number
State whether the following statement is True or False:
`[sqrt((sum"p"_1"q"_1)/(sum"p"_0"q"_1)) + (sumsqrt("q"_0"q"_1))/(sum("p"_0 + "p"_1))] xx 100` is Fisher’s Price Index Number.
Given the following table, find Walsh’s Price Index Number by completing the activity.
| Commodity | p0 | q0 | p1 | q1 | q0q1 | `sqrt("q"_0"q"_1)` | p0`sqrt("q"_0"q"_1)` | p1`sqrt("q"_0"q"_1)` |
| I | 20 | 9 | 30 | 4 | 36 | `square` | `square` | 180 |
| II | 10 | 5 | 50 | 5 | `square` | 5 | 50 | `square` |
| III | 40 | 8 | 10 | 2 | 16 | `square` | 160 | `square` |
| IV | 30 | 4 | 20 | 1 | `square` | 2 | `square` | 40 |
| Total | – | – | – | – | 390 | `square` |
Walsh’s price Index Number is
P01(W) = `square/(sum"p"_0sqrt("q"_0"q"_1)) xx 100`
= `510/square xx 100`
= `square`
If P01 (L) = 121, P01 (P) = 100, then P01 (F) = ______.
`sqrt((sump_1q_0)/(sump_0q_0)) xx sqrt((sump_1q_1)/(sump_0q_1)) xx 100`
Laspeyre’s Price Index Number uses current year’s quantities as weights.
In the following table, Laspeyre's and Paasche's Price Index Numbers are equal. Complete the following activity to find x :
| Commodity | Base Year | Current year | ||
| Price | Quantity | Price | Quantity | |
| A | 2 | 10 | 2 | 5 |
| B | 2 | 5 | x | 2 |
Solution: P01(L) = P01(P)
`(sum "p"_1"q"_0)/(sum "p"_0"q"_0) xx 100 = square/(sum "p"_0"q"_1) xx 100`
`(20 + 5x)/square xx 100 = square/14 xx 100`
∴ x = `square`
Complete the following activity to calculate, Laspeyre's and Paasche's Price Index Number for the following data :
| Commodity | Base Year | Current Year | ||
| Price p0 |
Quantity q0 |
Price p1 |
Quantity q1 |
|
| I | 8 | 30 | 12 | 25 |
| II | 10 | 42 | 20 | 16 |
Solution:
| Commodity | Base Year | Current Year | p1q0 | p0q0 | p1q1 | p0q1 | ||
| p0 | q0 | p1 | q1 | |||||
| I | 8 | 30 | 12 | 25 | 360 | 240 | 300 | 200 |
| II | 10 | 42 | 20 | 16 | 840 | 420 | 320 | 160 |
| Total | `bb(sump_1q_0=1200)` | `bb(sump_0q_0=660)` | `bb(sump_1q_1=620)` | `bb(sump_0q_1=360)` | ||||
Laspeyre's Price Index Number:
P01(L) = `(sum"p"_1"q"_0)/(sum"p"_0"q"_0) xx 100 = square/660xx100`
∴ P01(L) = `square`
Paasche 's Price Index Number:
P01(P) = `(sum"p"_1"q"_1)/(sum"p"_0"q"_1) xx 100=(620)/(square) xx 100`
∴ P01(P) = `square`
