Calculate Laspeyres Price Index Number.

220.00

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216.30

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219.12

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221.98

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Solution

The correct option is C $221.98$
Item Base Year
$P_{0}$ Base Year
$Q_{0}$ Current Year
$P_{1}$ Current Year
$Q_{1}$ $P_{0} Q_{0}$ $P_{1} Q_{0}$
$A$ $4$ $20$ $10$ $15$ $80$ $200$
$B$ $8$ $4$ $16$ $5$ $32$ $64$
$C$ $2$ $10$ $4$ $12$ $20$ $40$
$D$ $10$ $5$ $20$ $6$ $50$ $100$
$182$ $404$
Laspeyres Price Index Number
$P_{01}^{L} = \frac{\sum P_{1} Q_{0}}{\sum P_{0} Q_{0}} \times 100 = \frac{404}{182} \times 100 = 221.98$

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Similar questions

Q. Laspeyres Price Index Number = ?

Q. Laspeyres Price Index =?

Q. Which of these method of index number uses arithmetic average of the Laspeyres and Paasche's index.

Laspeyres' method is generally preferred over Paasche’s method because Laspeyres' method involves collecting data for just one year which is the base year whereas Paasche’s requires collecting data for every year the index number is required.

Q. Calculate Paasche's Price Index Number.
=?

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Item	Base Year $P_{0}$	Base Year $Q_{0}$	Current Year $P_{1}$	Current Year $Q_{1}$	$P_{0} Q_{0}$	$P_{1} Q_{0}$
$A$	$4$	$20$	$10$	$15$	$80$	$200$
$B$	$8$	$4$	$16$	$5$	$32$	$64$
$C$	$2$	$10$	$4$	$12$	$20$	$40$
$D$	$10$	$5$	$20$	$6$	$50$	$100$
					$182$	$404$

Calculate Laspeyres Price Index Number.

The correct option is C 221.98ItemBase YearP0Base YearQ0Current YearP1Current YearQ1P0Q0P1Q0A420101580200B841653264C2104122040D10520650100182404Laspeyres Price Index NumberPL01=∑P1Q0∑P0Q0×100=404182×100=221.98