From the following data, calculate the Simple Aggregative Price Index Number for the current year, taking the earlier year as base:

| Commodity | Base Year Price (Rs.) $p_0$ | Current Year Price (Rs.) $p_1$ |
|---|---|---|
| A | 10 | 12 |
| B | 20 | 25 |
| C | 30 | 33 |
| D | 40

Question

From the following data, calculate the Simple Aggregative Price Index Number for the current year, taking the earlier year as base:

| Commodity | Base Year Price (Rs.) $p_0$ | Current Year Price (Rs.) $p_1$ |
|---|---|---|
| A | 10 | 12 |
| B | 20 | 25 |
| C | 30 | 33 |
| D | 40 | 44 |

Accepted Answer

**Step 1 — Tabulate and total $p_0$ and $p_1$.**

| Commodity | $p_0$ | $p_1$ |
|---|---|---|
| A | 10 | 12 |
| B | 20 | 25 |
| C | 30 | 33 |
| D | 40 | 44 |
| **Total** | **$\Sigma p_0=100$** | **$\Sigma p_1=114$** |

**Step 2 — Apply the formula.**

$$P_{01}=\dfrac{\Sigma p_1}{\Sigma p_0}	imes 100=\dfrac{114}{100}	imes100=114$$

**Dual-check:** re-adding independently, $10+20+30+40=100$ and $12+25+33+44=114$ — both totals confirmed a second time before dividing.

> [!ANSWER]
> The Simple Aggregative Price Index Number is **114**, meaning prices have risen by 14% on average over the base year.

Commodity	$p_0$	$p_1$
A	10	12
B	20	25
C	30	33
D	40	44
Total	$\Sigma p_0=100$	$\Sigma p_1=114$

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