Calculate the index number for 2014 with 2013 as base from the following prices of the commodities by simple unweighted aggregative method- 1-c- Commodity and unit Price F 2013 Price - 2014 Butter per kg 20-00 22-00 Milk per litre 3-00 4-50 Cheese per Tin 18-00 19-80 Bread per Kg 2-00 3-80 Eggs per Dozen 4-00 4-50

Commodity Prices in 2013 (p0) Prices in 2014 (p1) Butter Milk Cheese Bread Eggs 20 3 18 2 4 22 4. ...

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XI

Economics

Market Demand Curve

Calculate the...

Question

Calculate the index number for 2014 with 2013 as base from the following prices of the commodities by simple (unweighted) aggregative method.

Commodity and unit Price ( ₹)
(2013) Price ( ₹)
(2014)

Butter per kg 20.00 22.00

Milk per litre 3.00 4.50

Cheese per Tin 18.00 19.80

Bread per Kg 2.00 3.80

Eggs per Dozen 4.00 4.50

Open in App

Solution

Commodity Prices in 2013
(p₀) Prices in 2014
(p₁)

Butter
Milk
Cheese
Bread
Eggs 20
3
18
2
4 22
4.5
19.80
3.80
4.50

∑ p₀ = 47 ∑ p₁ = 54.6

$p_{01} = \frac{Σ p_{1}}{Σ p_{0}} \times 100 = \frac{54.6}{47} \times 100 = \frac{5460}{47} = 116.17$
Thus, index number is 116.17.

Suggest Corrections

Similar questions

Calculate the simple aggregative price index and interpret it for the following:

$\begin{matrix} Commodities & 1980 Price & 2017 Price Coffee (per cup) & 0.20 & 1.51 Milk (per gallon) & 1.60 & 3.35 Burger & 0.44 & 4.42 Jeans & 27 & 63 Movie ticket & 1.92 & 13 \end{matrix}$

All prices are in dollars.

The price quotation of different commodities for 2011 and 2012 are given below. Calculate the index number for 2012 with 2011 as base year by using (i) Simple average of price relative and (ii) Weighted average of price relative

Q. Calculate weighted mean by weighting each price by the quantity consumed:

Food items	Quantity Consumed	Price in Rupees (per Kg)
Flour	500 kg	1.25
Ghee	200 kg	20.00
Sugar	30 kg	4.50
Potato	15 kg	0.50
Oil	40 kg	5.50

Q. Calculate weighted aggregative of actual price index number and quantity index number from the following data using (i) Laspeyre's Method , and (ii) Paasche's Method and (iii) Fisher's Method and interpret them.

Commodity	Base year		Current Year
Commodity	Quantity lbs.	Price per lb.	Quantity lbs.	Price per lb.
Bread	6	40 paise	7	30 paise
Meat	4	45 paise	5	50 paise
Tea	0.5	90 paise	1.5	40 pAise

Q. Calculate price index number by weighted average of price relative method.

Commodity	Price Base Year (in ₹)	Price current year ( in ₹)	Quantity Base year (in Kg)
A	6.0	8.0	40
B	3.0	3.2	80
C	2.0	3.0	2

Join BYJU'S Learning Program

Commodity and unit	Price ( ₹) (2013)	Price ( ₹) (2014)
Butter per kg	20.00	22.00
Milk per litre	3.00	4.50
Cheese per Tin	18.00	19.80
Bread per Kg	2.00	3.80
Eggs per Dozen	4.00	4.50

Commodity	Prices in 2013 (p₀)	Prices in 2014 (p₁)
Butter Milk Cheese Bread Eggs	20 3 18 2 4	22 4.5 19.80 3.80 4.50
	∑ p₀ = 47	∑ p₁ = 54.6

Commodity Prices in 2013 (p0) Prices in 2014 (p1) Butter Milk Cheese Bread Eggs 20 3 18 2 4 22 4.5 19.80 3.80 4.50 ∑ p0 = 47 ∑ p1 = 54.6 p01=Σp1Σp0×100=54.647×100=546047=116.17 Thus, index number is 116.17.

Commodity Prices in 2013
(p₀) Prices in 2014
(p₁)

Butter
Milk
Cheese
Bread
Eggs 20
3
18
2
4 22
4.5
19.80
3.80
4.50

∑ p₀ = 47 ∑ p₁ = 54.6

$p_{01} = \frac{Σ p_{1}}{Σ p_{0}} \times 100 = \frac{54.6}{47} \times 100 = \frac{5460}{47} = 116.17$
Thus, index number is 116.17.