Question 25 of 35
Q.
Observe the following table and answer the questions given below it:
| Commodities | Prices in 2006 (in ₹) (Base Year) P _0 | Prices in 2006 (in ₹) (Current Year) P _1 |
|---|---|---|
| A | 20 | 30 |
| B | 30 | 45 |
| C | 40 | 60 |
| D | 50 | 75 |
| E | 60 | 90 |
| Questions: | ||
| Write the formula for calculation of price index. | ||
| Find the value of ∑P | ||
| _0 | ||
| and ∑P | ||
| _1 | ||
| . | ||
| Find the price index P | ||
| _{01} | ||
| . |
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2024Subjective· 4mImportance★★★★★
71% · 25/35 Questions
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Start your 14-day free trial to unlock the full solution →This is a simple aggregative price-index problem: add up the base-year prices and the current-year prices, then apply the formula P01 = (sum P1 / sum P0) x 100. The answer is 150.
Step 1 — Formula for the price index (simple aggregative method):
P01 = (sum of current-year prices / sum of base-year prices) x 100, i.e. P01 = (sum P1 / sum P0) x 100.
Step 2 — Find sum P0 and sum P1:
| Commodity | Base-year price P0 | Current-year price P1 |
|---|---|---|
| A | 20 | 30 |
| B | 30 | 45 |
| C | 40 | 60 |
| D | 50 | 75 |
| E | 60 | 90 |
| Total | sum P0 = 200 | sum P1 = 300 |
sum P0 = 20 + 30 + 40 + 50 + 60 = 200
sum P1 = 30 + 45 + 60 + 75 + 90 = 300
…
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