The following table shows the prices per unit in 2010 and 2014 with weights of commodities A, B, C, D.
| Commodity | Weights | Price per unit in 2010 | Price per unit in 2014 |
| A | 20 | 25 | 30 |
| B | 25 | 20 | 30 |
| C | 15 | 50 | 70 |
| D | 40 | 5 | 10 |
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : 162.5
|
Price relative $I=\frac{p_1}{p_0}×100$ |
$Iw$ |
|
120 150 140 200
|
2400 3750 2100 8000 $∑w= 16250$ |
∴ Index number $=\frac{∑Iw}{∑w}=\frac{16250}{100}=162.5$