Consider the following table:
|
Commodity |
Quantity |
Price Year 2002 |
Price Year 2006 |
|
P |
30 |
200 |
280 |
|
Q |
20 |
100 |
200 |
|
R |
20 |
150 |
120 |
|
S |
10 |
50 |
100 |
The weighted aggregative price index number for year 2006 with year 2002 as base year using Laspeyre's index number is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 136
$\text{Laspeyres index} = \frac{\sum p_1 q_0}{\sum p_0 q_0} \times 100$
$\sum p_1 q_0 = 280\cdot30 + 200\cdot20 + 120\cdot20 + 100\cdot10$
$= 8400 + 4000 + 2400 + 1000 = 15800$
$\sum p_0 q_0 = 200\cdot30 + 100\cdot20 + 150\cdot20 + 50\cdot10$
$= 6000 + 2000 + 3000 + 500 = 11500$
$P_{01} = \frac{15800}{11500} \times 100$
$= 137.39$
The Laspeyres index number is $137.39$.