Given that \(\sum p_0q_0 = 700\), \(\sum p_0q_1 = 1450\), \(\sum p_1q_0 = 855\) and \(\sum p_1q_1 = 1300\). 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
Laspeyres’ price index uses the base-year quantities \(q_0\) as weights:
\( \displaystyle P_{01} = \frac{\sum p_1q_0}{\sum p_0q_0} \times 100 \)
\( \displaystyle = \frac{855}{700} \times 100 \)
\( = 122.14 \)
The values \(\sum p_0q_1\) and \(\sum p_1q_1\) are not needed for this index.
Note: This topic was not in the CUET 2026 syllabus.