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Solve the following: Calculate Laaspeyre's index from the given data: Commodity Base year current year Price Quantity Price Quantity X 8 30 12 25 Y 10 42 20 16 - Economics

Numerical

Solve the following:

Calculate Laaspeyre's index from the given data:

Commodity Base year current year
Price Quantity Price Quantity
X 8 30 12 25
Y 10 42 20 16
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Solution

Commodity Base year Current year    
p0 q0 p1 q1 p1q0 p0q0
X 8 30 12 25 360 240
Y 10 42 20 16 840 420
Total         1200 660

Laaspeyre's index = `(∑"p"_1"q"_0)/(∑"p"_0"q"_0)xx100`

= `1200/660xx100`

= 181.82

Concept: Construction of Index Numbers
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 6 Index Numbers
Exercise | Q 3. (4) | Page 60
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