Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Consider the following data :

Commodity Price year 2010 Price year 2016 Quantity year 2010 Quantity year 2016
A 1 2 10 13
B 5 10 12 16
C 6 10 15 18

The Laspeyre's price index number for year 2016 with year 2010 as base year is :

Options:

181

200

150

170

Correct Answer:

181

Explanation:

The correct answer is Option (1) → 181

Total for 2016 (Using 2010 quantities) = $2 × 10 + 10 × 12 + 10 × 15 = 290$

Price index = $\frac{Total\,current\,expenditure(Base)}{Total\,Base\,year\,expenditure}×100$

Price index = $\left(\frac{290}{160}\right)×100≃181.25$