Question

Using simple aggregate method, calculate price index number from the following data:

Commodity	A	B	C	D	E
1993 prices (in Rs)	50	40	10	5	2
1995 prices(in Rs)	80	60	20	10	6

• A. 164.69
• B. 154.75
• C. 162.69
• D. 152.75

Answer 1

Answer: (A)

164.69

$Commodity$	$Pricein1993$ $(InRs.)$ $P_0$	$Pricein1995$ $(InRs.)$ $P_1$
$A$	$50$	$80$
$B$	$40$	$60$
$C$	$10$	$20$
$D$	$5$	$10$
$E$	$2$	$6$
$Total$	$\sum P_0=107$	$\sum P_1=176$

$\Rightarrow$ Here, $\sum P_0=107$ and $\sum P_1=176$

$\therefore$ Simple Aggregate Price Index $P_{01}=\frac{\sum P_1}{\sum P_0}\times 100=\frac{176}{107}\times 100=164.48$