Practice Questions · Q8
Q.
Three commodities X, Y and Z are consumed by a household. Compute the price index number for 2024 by (a) the Simple Aggregate Method and (b) the Weighted Aggregate Method (weight ), and state which commodity's price change most influences EACH index.
| Commodity | (Rs.) | (Rs.) | |
|---|---|---|---|
| X | 10 | 15 | 20 |
| Y | 50 | 55 | 2 |
| Z | 5 | 20 | 1 |
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The total price rise here is . Splitting this by commodity: X contributes , Y contributes , and Z contributes — so Z ALONE accounts for of the entire measured rise, even though Z is bought in the smallest quantity of the three (only 1 unit).
- Weighted Aggregate Method (weight ):
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