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Law of Diminishing Marginal Utility

Write down th...

Question

Write down the formula of calculating purchasing power of one rupee when the cost of living index is given at some base period.

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Solution

Purchasing Power of One Rupee $= \frac{1}{C P I}$

where CPI = Consumer Price Index.

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Q. If the consumer price index for 1994 is 800, then the purchasing power of a rupee is _____.

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Group	Weights	Group Index No.
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