Solve the following: Calculate Price Index number from the given data: Commodity A B C D Price in 2005 (₹) 6 16 24 4 Price in 2010 (₹) 8 18 28 6 - Economics

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Numerical

Solve the following:

Calculate Price Index number from the given data:

Commodity A B C D
Price in 2005 (₹) 6 16 24 4
Price in 2010 (₹) 8 18 28 6
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Solution

Commodity Price in 2005 (₹) P0 Price in 2010 (₹) 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

  Is there an error in this question or solution?
Chapter 6: Index Numbers - EXERCISE [Page 60]

APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 6 Index Numbers
EXERCISE | Q 3. 1) | Page 60

RELATED QUESTIONS

Laaspeyre's index : _________ :: Paasche's index : Current year quantities


Solve the following:

Calculate Quantity Index number from the given data:

Commodity P Q R S T
Base year quantities 170 150 100 195 205
Current year quantities 90 70 75 150 95

Solve the following:

Calculate Value Index number from the given data:

Commodity Base year Current year
Price Quantity Price Quantity
A 40 15 70 20
B 10 12 60 22
C 50 10 90 18
D 20 14 100 16
E 30 13 40 15

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

Solve the following:

Calculate Paasche'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

Distinguish between Laaspeyre's Index and Paasche's Index.


Explain the steps involved in the construction of index numbers.


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

Use 1995 as base year in the following problem.

Commodity P Q R S T
Price (in ₹) in 1995 15 20 24 23 28
Price (in ₹) in 2000 27 38 32 40 45

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

Commodity Unit Base Year Price (in ₹) Current Year Price
(in ₹)
Wheat kg 28 36
Rice kg 40 56
Milk litre 35 45
Clothing meter 82 104
Fuel litre 58 72

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

Use 2000 as base year in the following problem.

Commodity Price (in ₹) for
year 2000
Price (in ₹) for year 2006
Watch 900 1475
Shoes 1760 2300
Sunglasses 600 1040
Mobile 4500 8500

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

Use 1990 as base year in the following problem.

Commodity Unit Price (in ₹) for
year 2000
Price (in ₹) for year 2006
Butter kg 27 33
Cheese kg 30 36
Milk litre 25 29
Bread loaf 10 14
Eggs doz 24 36
Ghee tin 250 320

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

Assume 2000 to be base year in the following problem.

Fruit Unit Price (in ₹)  
in 2000
Price
(in ₹) for 2007
Mango doz 250 300
Banana doz 12 24
Apple kg 80 110
Peach kg 75 90
Orange doz 36 65
Sweet Lime doz 30 45

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

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

Commodity I II III IV V
Base Year Quantities 140 120 100 200 225
Current Year Quantities 100 80 70 150 185

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

Commodity A B C D E
Base Year Quantities 360 280 340 160 260
Current Year Quantities 440 320 470 210 300

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

 

Commodity Base Year Current Year
Price Quantity Price Quantity
A 30 22 40 18
B 40 16 60 12
C 10 38 15 24
D 50 12 60 16
E 20 28 25 36

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

Commodity Base Year Current Year
Price Quantity Price Quantity
A 50 22 70 14
B 70 16 90 22
C 60 18 105 14
D 120 12 140 15
E 100 22 155 28

Find x if the Price Index Number by Simple Aggregate Method is 125.

Commodity P Q R S T
Base Year Price (in ₹) 8 12 16 22 18
Current Year
Price (in ₹)
12 18 x 28 22

Find x if the Price Index Number by Simple Aggregate Method is 120, taking 1995 as base year.

Commodity A B C D
Price (in ₹) for 1995 95 y 80 35
Price (in ₹) for 2003 116 74 92 42

Statements related to weighted index number:

  1. Suitable weights are assigned to various commodities.
  2. It gives relative importance to the commodity in the group.
  3. In most cases, quantities are used as weights.
  4. Laaspeyre’s Price index and Paasche’s Price Index are methods of constructing weighted index number.

Find the odd word

Steps involved in the construction of index number -


Assertion (A): Generally, arithmetic mean is used in the construction of index numbers.

Reasoning (R): Arithmetic mean is simple to compute compared to other averages.


State with reason whether you agree or disagree with the following statement:

Any year can be selected as the base year


Study the following table, figure, passage and answer the question given below it.

Commodities Price in 2015 in
Rs (base year) P0
Price in 2019 in
Rs. (current year) P1
L 20 30
M 60 80
N 100 130
O 40 60
Total ∑P0 = ? ∑P1 = ?
  1. Complete the above table (1m)
  2. Construct Price Index number from the above data (3m)

State with reasons whether you agree or disagree with the following statement:

It is not essential to decide the purpose of an index number while constructing it.


Explain the steps in constructing a price index number.


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