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When the units of prices of different commodities are not the same, then the formula suitable to calculate price index number is : |
$P_{01}=\frac{∑P_i}{∑P_0}×100$ $P_{01}=\frac{∑P_R}{N}$ N is the number of commodities $Q_{01}=\frac{∑Q_1}{∑Q_0}×100$ $Q_{01}=\frac{∑Q_1}{N}$ N is the number of commodities. |
$P_{01}=\frac{∑P_R}{N}$ N is the number of commodities |
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. |
