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Question
Solve the following problem :
Calculate Marshall-Edgeworth’s Price Index Number for the following data.
| Commodity | Base Year | Current Year | ||
| Price p0 |
Quantity q0 |
Price p1 |
Quantity q1 |
|
| X | 12 | 35 | 15 | 25 |
| Y | 29 | 50 | 30 | 70 |
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Solution
| Commodity | Base Year | Current Year | q0 + q1 | p0 (q0 + q1) |
p1 {q0 + q1) |
||
| p0 | q0 | p1 | q1 | ||||
| X | 12 | 35 | 15 | 25 | 60 | 720 | 900 |
| Y | 29 | 50 | 30 | 70 | 120 | 3480 | 3600 |
| Total | – | – | – | – | – | 4200 | 4500 |
From the table,
`sum"p"_0("q"_0 + "q"_1) = 4,200, sum"p"_1("q"_0 + "q"_1) = 4500`
Marshall-Edgeworth’s Price Index Number:
P01(M–E) = `(sum"p"_1("q"_0 + "q"_1))/(sum"p"_0("q"_0 + "q"_1)) xx 100`
= `(4500)/(4200) xx 100`
= 107.14
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RELATED QUESTIONS
If ∑p0q0 = 140, ∑p0q1 = 200, ∑p1q0 = 350, ∑p1q1 = 460, find Laspeyre’s, Paasche’s, Dorbish-Bowley’s and Marshall-Edgeworth’s Price Index Numbers.
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| Price | Quantity | Price | Quantity | |
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State whether the following is True or False :
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| Commodity | Base year | Current year | ||
| Price p0 |
Quantity q0 |
price p1 |
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|
| A | 20 | 18 | 30 | 15 |
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| Commodity | Base Year | Current Year | ||
| Price p0 |
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|
| A | 3 | x | 2 | 5 |
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Given that Laspeyre’s and Paasche’s Price Index Numbers are 25 and 16 respectively, find Dorbish-Bowley’s and Fisher’s Price Index Number.
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If `sum"p_"0"q"_0 = 120, sum "p"_0"q"_1 = 160, sum "p"_1"q"_1 = 140, and sum "p"_1"q"+0` = 200, find Laspeyre’s, Paasche’s Dorbish-Bowley’s and Marshall Edgeworth’s Price Index Number.
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.
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| 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` |
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= `510/square xx 100`
= `square`
Calculate Marshall – Edgeworth’s price index number for the following data:
| Commodity | Base year | Current year | ||
| Price | Quantity | Price | Quantity | |
| P | 12 | 20 | 18 | 24 |
| Q | 14 | 12 | 21 | 16 |
| R | 8 | 10 | 12 | 18 |
| S | 16 | 15 | 20 | 25 |
