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Question 25 of 35
Q.

Observe the following table and answer the questions given below it:

CommoditiesPrices in 2006 (in ₹) (Base Year) P _0Prices in 2006 (in ₹) (Current Year) P _1
A2030
B3045
C4060
D5075
E6090
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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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:

CommodityBase-year price P0Current-year price P1
A2030
B3045
C4060
D5075
E6090
Totalsum P0 = 200sum P1 = 300

sum P0 = 20 + 30 + 40 + 50 + 60 = 200

sum P1 = 30 + 45 + 60 + 75 + 90 = 300

…

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