 # Sandeep Garg Solutions for Class 11 Economics Chapter 9 - Index Numbers

Sandeep Garg Class 11 Economics Solutions Economics Chapter 9 – Index Numbers are illustrated by the professional economic educator from the contemporary edition of Sandeep Garg Economics Class 11 textbook solutions.

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## Sandeep Garg Solutions Class 11 – Chapter 9

Question 1

Arrange an index number for the year 2015 on the basis of 2010 using the simple aggregative method:

 Goods Unit Cost 2011 2016 Potato Kilo 100 500 Tomato Kilo 400 250 Onion Kilo 200 400 OIl litre 4 5 Fabric meter 2 3

 Goods 2010 Price (P0) 2015 Price (P1) Potato Tomato Onion OIl Fabric 100 400 200 4 2 500 250 400 5 3 ΣP0 = 702 ΣP1 = 928

P01 = $\frac{\sum P_{1}}{\sum P_{0}}\, X\, 100$

P01 = $\frac{928}{702}\, X\, 100$

P01 = 132

Question 2

Form an index number using 2010 price:

 Items P Q R S T U Prices (2011) 220 50 370 110 70 90 Prices (2016) 250 80 500 130 72 100

 Items Price in 2011 (P0) Price in 2016 (P1) P Q R S T U 220 50 370 110 70 90 250 80 500 130 72 100 ΣP0 = 910 ΣP1 = 1152

P01 = $\frac{\sum P_{1}}{\sum P_{0}}\, X\, 100$

P01 = $\frac{1152}{910}\, X\, 100$

P01 = 126.59

Question 3

Prepare an index number for 2014 on the basis of 2010 from the below data using aggregate expenditure method.

 Particulars Quantity (kg.) Prices 2010 2014 G 9 21 25 H 6 20 22 I 4 19 23 J 3 9 10 K 3 5 9

 Article 2010 Price (P0) 2014 Price (P1) Quantity (Q0) P0Q0 P1Q0 G H I J K 21 20 19 9 5 25 22 23 10 9 9 6 4 3 3 189 120 76 27 15 225 132 92 30 27 ΣP0Q0 = 427 ΣP1Q0 = 506

The consumer price index for the year 2014 is

$\frac{\sum P_{1}Q_{0}}{\sum P_{0}Q_{0}}\,\, \times 100$ $\frac{506}{427}\, X\, 100$

= 118

Question 4

Calculate the consumer index number by using the family budget method.

 Items Quantity Base Price Year Current Price Year Rent 45 200 225 Food 20 300 350 Clothing 8 150 175 Fuel 10 100 110 Misc. 17 200 250

 Items Base Price Year (P0) Current Price Year (P1) $R \,=\, \frac{P_{0}}{P_{1}} \, \times \, 100$ Quantity (Q0) P0Q0 (A) RA Rent 200 225 88.8 45 9000 799200 Food 300 350 85.7 20 6000 514200 Clothing 150 175 85.7 8 1200 685 Fuel 100 110 90.9 10 1000 1909 Misc. 200 250 80 17 3400 1360 ΣA= 20600 ΣRA = 1317354

The consumer price index for the current year

$\frac{\sum RA}{\sum A} = \frac{1317354.6}{20600} = 63.94$

Question 5

Arrange an index for 2015 taking 2010 using a simple average of price relatives method

 Items A B C D Year 2010 Price 20 40 50 70 Year 2015 Price 30 50 70 90

 Items Year 2010 Price (P0) Year 2015 Price (P1) Price Relative= $\frac{P0}{P1}$ X 100 A 20 30 66.6 B 40 50 80 C 50 70 71.42 D 70 90 87.5 = 75 