Chapter 6. INDEX NUMBERS 4. Calculate Laaspeyre's index from the given data

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter 6. INDEX NUMBERS

4. Calculate Laaspeyre's index from the given data:

Commodity	Base year		current year
	Price	Quantity	Price	Quantity
X	8	30	12	25
Y	10	42	20	16

 

Solution: -

 

Commodity	Base year		Current year
	p0	q0	p1	q1	p1q0	p0q0
X	8	30	12	25	360	240
Y	10	42	20	16	840	420
Total					1200	660

 

Laaspeyre's index = p1q0/p0q0 * 100

∑p1q0/∑p0q0×100

= 1200/660×100

= 181.81