Compute Laspeyre's Ideal Index No.
|
Commodities |
Price (₹) |
Value |
Price (₹) |
Value |
|
|
2008 |
2010 |
||
|
A |
5 |
40 |
8 |
40 |
|
B |
8 |
64 |
12 |
168 |
|
C |
10 |
120 |
22 |
132 |
|
D |
12 |
144 |
26 |
208 |
|
E |
16 |
288 |
20 |
300 |
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 194.51
For calculating base period and current period quantity we divide value by price.
| Commodity |
$p_0$ |
$q_0$ |
$p_1$ |
$q_1$ |
$p_1q_0$ |
$p_0q_0$ |
$p_1q_1$ |
$p_0q_1$ |
|
A |
5 |
8 |
8 |
5 |
64 |
40 |
40 |
25 |
|
B |
8 |
8 |
12 |
14 |
96 |
64 |
168 |
112 |
|
C |
10 |
12 |
22 |
6 |
264 |
120 |
132 |
60 |
|
D |
12 |
12 |
26 |
8 |
312 |
144 |
208 |
96 |
|
E |
16 |
18 |
30 |
10 |
540 |
288 |
300 |
160 |
|
|
|
|
|
|
$\sum p_1q_0= 1276$ |
$\sum p_0q_0= 656$ |
$\sum p_1q_1= 848$ |
$\sum p_0q_1= 453$ |
Laspeyre's Method:
$P_{01} = \frac{\sum p_1q_0}{\sum p_0q_0} \times 100 $
$P_{01} = \frac{1276}{656} \times 100 = 194.51$