Chapter 6. INDEX NUMBERS Q.3. Solve the following: 1. Calculate Price Index number from the given data

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter 6. INDEX NUMBERS

Q.3. Solve the following:

1. Calculate Price Index number from the given data:

Commodity	A	B	C	D
Price in 2005 (₹)	6	16	24	4
Price in 2010 (₹)	8	18	28	6

SOLUTION:- 

Commodity	Price in 2005 (₹) P0	Price in 2010 (₹) P1
A	6	8
B	16	18
C	24	28
D	4	6
Total	∑P0 = 50	∑P1 = 60

 

⇒ Here, ∑P0 = 50 and ∑P1 = 60

Using Simple Aggregate Price Index formula

∴ Simple Aggregate Price Index = P1/P0 * 100

60/50 * 100

=120