When the units of prices of different commodities are not the same, then the formula suitable to calculate price index number is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → $P_{01}=\frac{∑P_R}{N}$ N is the number of commodities
$P_{01}=\frac{∑P_i}{∑P_0}×100$
This formula represents a simple aggregate price index.