Question

A factory uses three raw materials A ,B and C in the manufacturing process.The price of material were as shown below: Calculate a simple aggregate index for $2005$.

Commodity	Price in Rs in 1995	Price in Rs in 2005
A	4	5
B	60	57
C	36	42

• A. 119
• B. 106
• C. 104
• D. 108

Answer 1

The correct option is C 104

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Commodity	Price in Rs in $1995$ $\left(p_0\right)$	Price in Rs in $2005$ $\left(p_1\right)$
A	$4$	$5$
B	$60$	$57$
C	$36$	$42$

$\sum p_0$ = $100$ , $\sum p_1$= $104$
price index number $p_{01}$ = $\frac{\sum p_1}{\sum p_0}\times 100$
=$\frac{104}{100}\times 100$
= $104$