Table below shows consumer price index for 2020 taking 2019 as base year, using simple average of Price Relative Index method, relative price index number for cheese will be :
| Commodities | Price in 2019 | Price in 2020 |
| Butter | 20 | 21 |
| Cheese | 16 | 12 |
| Milk | 3 | 3 |
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 75
Price Relative Index = $\frac{Price\,in\,current\,year}{Price\,in\,base\,year}×100$
$=\frac{12}{16}×100=75$