The price relation for year 2020 with reference to year 2010 is 117. Correct interpretation of the given information is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Prices increased by 17% in year 2020
The price relative of the current year with respect to the base year is
\( \displaystyle \frac{p_{2020}}{p_{2010}} \times 100 = 117 \)
The base year 2010 has the value 100, so
\(117 - 100 = 17\)
The prices in 2020 are 17% higher than in 2010: the prices increased by 17% in 2020 compared with the base year.
Why the other options are incorrect
Option (1) Prices increased by 17% in year 2010 — Incorrect. 2010 is the base year; the increase is in 2020.
Option (3) Prices increased by 117% in year 2010 — Incorrect. 117 is the index, not the increase, and 2010 is the base year.
Option (4) Prices increased by 117% in year 2020 — Incorrect. An index of 117 means prices are 117% of the base level, an increase of only 17%.
Note: This topic was not in the CUET 2026 syllabus.