A factory used three raw materials A, B and C in its manufacturing process. The prices are as follows using 2010 as the base year
| Commodities | Price in 2010 | Price in 2020 |
| A | 5 | 6 |
| B | 65 | 57 |
| C | 30 | 42 |
a simple aggregate price index for year 2020 is
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 105
The simple aggregate price index is,
$P=\frac{∑P_n}{∑P_0}×100$
$=\frac{6+57+42}{5+65+30}×100=\frac{105}{100}×100$
$=105$