Worked Examples · Example 3
Q.
From the following data for four commodities, calculate the price index number by the Simple Aggregative Method.
| Commodity | Base Year Price (p0) | Current Year Price (p1) |
|---|---|---|
| A | 10 | 15 |
| B | 8 | 10 |
| C | 5 | 6 |
| D | 12 | 14 |
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✓ Free question
Step 1 — Sum the prices.
Step 2 — Apply the formula.
✓Final answer
P01 = 128.57 — prices have risen, on average, by about 28.57% over the base year.
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