Question

Compute a price index for the following by simple aggregate method.

Commodity	A	B	C	D	E	F
Price in 1986 (Rs)	20	30	10	25	40	50
Price in 1991 (Rs)	25	30	15	35	45	55

• A. 117.14
• B. 118.13
• C. 119.13
• D. 107.13

Answer 1

Answer: (A)

117.14

commodity	price in $1986$ $\left(p_0\right)$	price in $1991$ $\left(p_1\right)$
A	$20$	$25$
B	$30$	$30$
C	$10$	$15$
D	$25$	$35$
E	$40$	$45$
F	$50$	$50$

$\sum p_0$ = $175$ , $\sum p_1$= $200$
price index number $p_{01}$ = $\frac{\sum p_1}{\sum p_0}\times 100$
=$\frac{200}{175}\times 100$

=$\frac{20000}{175}$

= $117.14$