Given that $∑p_0q_0=800, ∑p_0q_1=900, ∑p_1q_0=1000, ∑p_1q_1=1200$ where subscripts 0 and 1 refer to base year and current year respectively. The Laspeyre's Index number is
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 125
$LP=\left(\frac{∑p_1q_0}{∑p_0q_0}\right)$
$=\left(\frac{1000}{800}\right)×100$
$=1.25×100$
$=125$