Question

Price relatives are a percentage ratio of current year price and:

• A. Base year quantity
• B. Previous year quantity
• C. Base year price
• D. Current year quantity

Answer 1

The correct option is C Base year price

$\Rightarrow$ Price relatives are a percentage ratio of current year price and $Baseyearprice$.

$\Rightarrow$ Thus, $Pricerelative=\frac{P_1}{P_0}\times 100,$ where $P_0$ is the price in the base year and $P_1$ of corresponding commodity in present year (for which index is to be calculated)