Given that $∑p_0q_0= 700, ∑p_0q_1=1450, ∑p_1q_0=855$ and $∑p_1q_1=1300.$ Where subscripts 0 and 1 are used for base year and current year respectively. The Laspeyer's price index number is :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 122.14
The Laspeyres Price Index is,
$P_L=\frac{∑(p_1q_0)}{∑p_0q_0}×100$
$=\frac{855}{700}×100$
$=122.14$