Compute the cost of living index number by the method of total expenditure from the following data for the year 2019: | Items | A | B | C | D | E | |---|---|---|---|---|---| | Unit | Quintal | 20 kg | 10 litre | dozen | meter | | Quantity of 2018 | 50 kg | 18 kg | 12 litre | 20 pieces | 14 meter | | Price of 2018 | 1200 | 340 | 30 | 15 | 12 | | Price of 2019 | 1700 | 380 | 40 | 24 | 16 |

> > [!TLDR] > Aggregate-expenditure method: $\dfrac{\sum p_1 q_0}{\sum p_0 q_0}\times 100 = \dfrac{1504}{1135}\times 100 = 132.51$. > > The prices are quoted per stated unit (quintal, 20 kg, 10 litre, dozen, meter), while the base-year quantities $q_0$ are in kg / litre / pieces / meter. First reduce each price to the **same unit as its quantity**: > > | Item | $q_0$ | $p_0$ (2018, per quantity-unit) | $p_1$ (2019, per quantity-unit) | $p_0 q_0$ | $p_1 q_0$ | > |---|---|---|---|---|---| > | A | 50 kg | $1200/100 = 12$/kg | $1700/100 = 17$/kg | 600 | 850 | > | B | 18 kg | $340/20 = 17$/kg | $380/20 = 19$/kg | 306 | 342 | > | C | 12 litre | $30/10 = 3$/litre | $40/10 = 4$/litre | 36 | 48 | > | D | 20 pieces | $15/12 = 1.25$/piece | $24/12 = 2$/piece | 25 | 40 | > | E | 14 m | $12$/m | $16$/m | 168 | 224 | > | **Total** | | | | **1135** | **1504** | > …

Compute the cost of living index number by the method of total expenditure from the following data for the yea

Question 18 of 45

Compute the cost of living index number by the method of total expenditure from the following data for the year 2019:

Items	A	B	C	D	E
Unit	Quintal	20 kg	10 litre	dozen	meter
Quantity of 2018	50 kg	18 kg	12 litre	20 pieces	14 meter
Price of 2018	1200	340	30	15	12
Price of 2019	1700	380	40	24	16

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2020Subjective· 3mImportance★★★★★

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Aggregate-expenditure method: $\dfrac{\sum p_1 q_0}{\sum p_0 q_0}\times 100 = \dfrac{1504}{1135}\times 100 = 132.51$ .

The prices are quoted per stated unit (quintal, 20 kg, 10 litre, dozen, meter), while the base-year quantities $q_0$ are in kg / litre / pieces / meter. First reduce each price to the same unit as its quantity:

Item	$q_0$	$p_0$ (2018, per quantity-unit)	$p_1$ (2019, per quantity-unit)	$p_0 q_0$	$p_1 q_0$
A	50 kg	$1200/100 = 12$ /kg	$1700/100 = 17$ /kg	600	850
B	18 kg	$340/20 = 17$ /kg	$380/20 = 19$ /kg	306	342
C	12 litre	$30/10 = 3$ /litre	$40/10 = 4$ /litre	36	48
D	20 pieces	$15/12 = 1.25$ /piece	$24/12 = 2$ /piece	25	40
E	14 m	$12$ /m	$16$ /m	168	224
Total				1135	1504
…

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. Which expenditure of items is assigned as weights in the method of family budget?$
(a) Expenditure of selected year
(b) Average annual expenditure
(c) Expenditure of base year
(d) Expenditure of current year
›Reveal solutionSolution

In the family budget method the weights are the base-year expenditure on each item.

The family budget (weighted average of price relatives) method builds the cost-of-living / consumer price index as $I=\dfrac{\Sigma PW}{\Sigma W}$ , where $P=\dfrac{p_1}{p_0}\times100$ is the price relative and $W$ is the value weight. The weight represents how important an item is in a typical family's spending, and this is measured by the amount f …

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CBSE 2025Set MARCH1 markMCQ
$Q. Which prices are considered in the construction of the cost of living index number?$
(a) Market price
(b) Wholesale price
(c) Average price
(d) Retail price
›Reveal solutionSolution

The cost of living index number (a consumer price index) is built from the retail prices of the basket of goods and services consumed by a defined class of people — option (d).

The cost of living index number, studied in the Gujarat HSC / GSEB Class-12 Statistics Index Number chapter, tracks how the cost of maintaining a fixed standard of living changes over time for a particular group of consumers (e.g. industrial workers).

…

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CBSE 2025Set MARCH1 mark
$Q. Write the formula to find the rate of inflation.$
›Reveal solutionSolution

The rate of inflation is the percentage change in the price (consumer) index number between two consecutive periods: $\dfrac{P_{\text{current}} - P_{\text{previous}}}{P_{\text{previous}}} \times 100$ .

GSEB Class-12 Statistics, Index Number chapter:

Inflation is the rate at which the general price level rises over time, and it is measured from the price index numbers of two consecutive periods.

…

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CBSE 2023Set MARCH1 markMCQ
$Q. Which index number is used to find the rate of inflation?$
(a) (A) Cost of Living Index Number
(b) (B) Wholesale Price Index Number
(c) (C) Index Number of National Income
(d) (D) Index Number of Import - Export
›Reveal solutionSolution

The rate of inflation reflects the general rise in the price level of goods, which is measured by the Wholesale Price Index Number (WPI). Option (B).

Inflation is the sustained increase in the general price level of a wide basket of commodities. Among the given choices, the Cost of Living index measures the effect of price changes on a particular class of consumers, the National Income index and the Import–Export index measure other economic aggregates, whereas the **Wh …

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