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Worked Examples · Example 5
Q.

The following table gives base-year and current-year prices and quantities for four commodities. Calculate the price index number by Laspeyres' Method.

Commodityp0q0p1q1
A10201518
B8301025
C550655
D12151412
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Step 1 — Compute p1q0p_1q_0 and p0q0p_0q_0 for each commodity.

Commodityp0q0p1q0
A10×20=20015×20=300
B8×30=24010×30=300
C5×50=2506×50=300
D12×15=18014×15=210
Total8701110

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