Following table shows the data on energy consumption and expenditure at Badarpur Thermal Power Station, in Delhi region. Construct an aggregative price index for the energy expenditures in year 2015 using Laspeyres’ index.

403

The correct answer is Option (2) → 403

Where:

• $p_0$ = Price in base year ($1987$)
• $p_1$ = Price in current year ($2015$)
• $q_0$ = Quantity in base year ($1987$)

$\text{(Laspeyres Index) } I_{2015} = \frac{10.92 \times 5416 + 6.16 \times 15293 + 5.13 \times 21287 + 8.10 \times 9473}{1.97 \times 5416 + 2.32 \times 15293 + 0.79 \times 21287 + 2.25 \times 9473} \times 100$

$= \frac{339281.21}{84280.26} \times 100$

$= 403$