Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board Chapter 6. INDEX NUMBERS 3. Calculate Value Index number from the given data

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter 6. INDEX NUMBERS

3. Calculate Value Index number from the given data:

Commodity	Base year		Current year
	Price	Quantity	Price	Quantity
A	40	15	70	20
B	10	12	60	22
C	50	10	90	18
D	20	14	100	16
E	30	13	40	15

Solution: -

Commodity	Base year			Current year
	p0	q0	p0q0	p1	q1	p1q1
A	40	15	600	70	20	1400
B	10	12	120	60	22	1320
C	50	10	500	90	18	1620
D	20	14	280	100	16	1600
E	30	13	390	40	15	600
Total	∑p0q0	=	1890	∑p1q1	=	6540

value Index Number = p1q1/p0q0 * 100

∑p1q1/∑p0q0×100

= 6540/1890×100

= 346.03