Question

Compute Paasche's index.

Items	Base Year	Base Year	Current Year	Current Year
	Price $\left(p_0\right)$ (Rs.)	Quantity $\left(q_0\right)$	Price (Rs.) $\left(p_1\right)$	Quantity $\left(q_1\right)$
$A$	$4$	$10$	$6$	$15$
$B$	$6$	$15$	$4$	$20$
$C$	$8$	$5$	$10$	$4$

• A. $125.38$
• B. $147.25$
• C. $129.8$
• D. $99.057$

Answer 1

The correct option is D $99.057$

	$p_1{q}_1$	$p_0{q}_1$
A	90	60
B	80	120
C	40	32
Sum	210	212

Paasche's index is given by:

$P_{01}=\frac{\sum p_1{q}_1}{\sum p_0{q}_1}\times 100$

$P_{01}=\frac{210}{212}\times 100$

$P_{01}=99.057$