For which party is the wholesale price index used to calculate price change?

Non-manual labourers

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Agricultural labourers

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Industrial labourers

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Businesses

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Solution

The correct option is D Businesses
Since the purchasing power of businesses or farmers is completely different from that of an individual, using the CPI would be incorrect. So, we use wholesale price index or WPI for calculating change in prices for this category of people.

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Similar questions

(I) The change in any price is reflected in an index number.

(II) The wholesale price index can be used to measure the monetary and real value of national income and expenditure.

A consumer price index measures changes in

(i) retail prices

(ii) wholesale prices

(iii) producers prices

The wholesale price index is used to forecast demand and supply scenario in an economy.

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