Construct the consumer index for 2010 taking 2009 as the base year, and using simple average of price relative method for the following data:
| Commodities | Price in 2009 | Price in 2010 |
| Butter | 20 | 21 |
| Cheese | 16 | 12 |
| Milk | 3 | 3 |
| Eggs | 2.80 | 2.80 |
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : 95
| Commodities | Base Price (₹) | Current Price $P_1$ | Price relative $\frac{P_1}{P_0}×100$ |
|
Butter Cheese Milk Eggs |
20 16 3 2.80 |
21 12 3 2.80 |
$(21/20)×100=105$ $(12/16)×100=75$ $(3/3)×100=100$ $(2.80/2.80)×100=100$ |
| $∑\frac{p_1}{p_0}×100=380$ |
Hence required consumer price index.
$p_{01}=\frac{1}{N}×380$
$=\frac{1}{4}×380= 95$