Continuing the same commodities, with current-year quantities $q_1$: A = 6, B = 5, C = 4, D = 3, calculate Paasche's Price Index Number.

**Step 1 — Compute $p_0q_1$ and $p_1q_1$ for every commodity.** | Commodity | $p_0$ | $p_1$ | $q_1$ | $p_0q_1$ | $p_1q_1$ | |---|---|---|---|---|---| | A | 10 | 12 | 6 | 60 | 72 | | B | 20 | 25 | 5 | 100 | 125 | | C | 30 | 33 | 4 | 120 | 132 | | D | 40 | 44 | 3 | 120 | 132 | | **Total** | | | | **$\Sigma p_0q_1=400$** | **$\Sigma p_1q_1=461$** | **Step 2 — Apply Paasche's formula.** $$P_{01}^{P}=\dfrac{\Sigma p_1q_1}{\Sigma p_0q_1}\times100=\dfrac{461}{400}\times100=115.25$$ …

Continuing the same commodities, with current-year quantities q₁: A = 6, B = 5, C = 4, D = 3, calculate Paasch

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Step 1 — Compute $p_0q_1$ and $p_1q_1$ for every commodity.

Commodity	$p_0$	$p_1$	$q_1$	$p_0q_1$	$p_1q_1$
A	10	12	6	60	72
B	20	25	5	100	125
C	30	33	4	120	132
D	40	44	3	120	132
Total				$\Sigma p_0q_1=400$	$\Sigma p_1q_1=461$

Step 2 — Apply Paasche's formula.

$P_{01}^{P}=\dfrac{\Sigma p_1q_1}{\Sigma p_0q_1}\times100=\dfrac{461}{400}\times100=115.25$ …

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Q.Continuing the same commodities, with current-year quantities $q_1$ : A = 6, B = 5, C = 4, D = 3, calculate Paasche's Price Index Number.

Concept understanding — Weighted Index Numbers — Laspeyres, Paasche and Fisher's Ideal

Q.Continuing the same commodities, with current-year quantities q1q_1q1​: A = 6, B = 5, C = 4, D = 3, calculate Paasche's Price Index Number.

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Q.Continuing the same commodities, with current-year quantities $q_1$ : A = 6, B = 5, C = 4, D = 3, calculate Paasche's Price Index Number.

Unlock everything free for 14 days