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.
| Commodity | p0 | q0 | p1 | q1 |
|---|---|---|---|---|
| A | 10 | 20 | 15 | 18 |
| B | 8 | 30 | 10 | 25 |
| C | 5 | 50 | 6 | 55 |
| D | 12 | 15 | 14 | 12 |
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Start your 14-day free trial to unlock the full solution →Step 1 — Compute and for each commodity.
| Commodity | p0q0 | p1q0 |
|---|---|---|
| A | 10×20=200 | 15×20=300 |
| B | 8×30=240 | 10×30=300 |
| C | 5×50=250 | 6×50=300 |
| D | 12×15=180 | 14×15=210 |
| Total | 870 | 1110 |
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