From the following data, calculate Laspeyres' Price Index Number: | Commodity | $p_0$ | $p_1$ | $q_0$ | |---|---|---|---| | A | 10 | 12 | 5 | | B | 20 | 25 | 4 | | C | 30 | 33 | 3 | | D | 40 | 44 | 2 |

**Step 1 — Compute $p_0q_0$ and $p_1q_0$ for every commodity.** | Commodity | $p_0$ | $p_1$ | $q_0$ | $p_0q_0$ | $p_1q_0$ | |---|---|---|---|---|---| | A | 10 | 12 | 5 | 50 | 60 | | B | 20 | 25 | 4 | 80 | 100 | | C | 30 | 33 | 3 | 90 | 99 | | D | 40 | 44 | 2 | 80 | 88 | | **Total** | | | | **$\Sigma p_0q_0=300$** | **$\Sigma p_1q_0=347$** | **Step 2 — Apply Laspeyres' formula.** $$P_{01}^{L}=\dfrac{\Sigma p_1q_0}{\Sigma p_0q_0}\times100=\dfrac{347}{300}\times100=115.67$$ …

From the following data, calculate Laspeyres' Pric – Class 12 Statistics

Worked Examples · Example 3

From the following data, calculate Laspeyres' Price Index Number:

Commodity	$p_0$	$p_1$	$q_0$
A	10	12	5
B	20	25	4
C	30	33	3
D	40	44	2

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Step 1 — Compute $p_0q_0$ and $p_1q_0$ for every commodity.

Commodity	$p_0$	$p_1$	$q_0$	$p_0q_0$	$p_1q_0$
A	10	12	5	50	60
B	20	25	4	80	100
C	30	33	3	90	99
D	40	44	2	80	88
Total				$\Sigma p_0q_0=300$	$\Sigma p_1q_0=347$

Step 2 — Apply Laspeyres' formula.

$P_{01}^{L}=\dfrac{\Sigma p_1q_0}{\Sigma p_0q_0}\times100=\dfrac{347}{300}\times100=115.67$ …

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