Maharashtra State BoardHSC Commerce 12th Board Exam
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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

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

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. (1) | Page 60
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