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In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :
- a)150, 100, 120, 80 for (1994–97)
- b)135, 100, 125, 87 for (1994–97)
- c)140, 100, 120, 80 for (1994–97)
- d)None of these.
Correct answer is option 'A'. Can you explain this answer?
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In 1996 the average price of a commodity was 20% more than in 1995 but...
Given information:
- In 1996, the commodity price was 20% more than in 1995 and 20% less than in 1994.
- In 1997, the commodity price was 50% more than in 1995.
We need to find the price relatives for 1994-97 using 1995 as the base year (price relative = 100 for 1995).
Solution:
Let's assume the commodity price in 1995 was x. Then, we can write the following equations based on the given information:
- In 1994, the commodity price was 20% more than in 1996: x = 1.2(0.8x) = 0.96x
- In 1996, the commodity price was 20% less than in 1994: 0.8x = 0.8(1.25x) = x
- In 1997, the commodity price was 50% more than in 1995: 1.5x
Now, we can find the price relatives for each year using the formula:
Price relative = (Commodity price in a given year / Commodity price in the base year) * 100
a) For (1994-97) with (1995 as base year):
- Price relative for 1994 = (0.96x / x) * 100 = 96
- Price relative for 1995 = 100 (given)
- Price relative for 1996 = (x / x) * 100 = 100
- Price relative for 1997 = (1.5x / x) * 100 = 150
Therefore, the answer is option (A) 150, 100, 120, 80 for (1994-97).
b) For (1994-97) with (1996 as base year):
- Price relative for 1994 = (0.96x / 0.8x) * 100 = 120
- Price relative for 1995 = (x / 0.8x) * 100 = 125
- Price relative for 1996 = 100 (given)
- Price relative for 1997 = (1.5x / 0.8x) * 100 = 187.5
Therefore, the answer is not option (B).
c) For (1994-97) with (1997 as base year):
- Price relative for 1994 = (0.96x / 1.5x) * 100 = 64
- Price relative for 1995 = (x / 1.5x) * 100 = 66.67
- Price relative for 1996 = (x / 1.5x) * 100 = 66.67
- Price relative for 1997 = 100 (given)
Therefore, the answer is not option (C).
Hence, the correct answer is option (A) 150, 100, 120, 80 for (1994-97).
- In 1996, the commodity price was 20% more than in 1995 and 20% less than in 1994.
- In 1997, the commodity price was 50% more than in 1995.
We need to find the price relatives for 1994-97 using 1995 as the base year (price relative = 100 for 1995).
Solution:
Let's assume the commodity price in 1995 was x. Then, we can write the following equations based on the given information:
- In 1994, the commodity price was 20% more than in 1996: x = 1.2(0.8x) = 0.96x
- In 1996, the commodity price was 20% less than in 1994: 0.8x = 0.8(1.25x) = x
- In 1997, the commodity price was 50% more than in 1995: 1.5x
Now, we can find the price relatives for each year using the formula:
Price relative = (Commodity price in a given year / Commodity price in the base year) * 100
a) For (1994-97) with (1995 as base year):
- Price relative for 1994 = (0.96x / x) * 100 = 96
- Price relative for 1995 = 100 (given)
- Price relative for 1996 = (x / x) * 100 = 100
- Price relative for 1997 = (1.5x / x) * 100 = 150
Therefore, the answer is option (A) 150, 100, 120, 80 for (1994-97).
b) For (1994-97) with (1996 as base year):
- Price relative for 1994 = (0.96x / 0.8x) * 100 = 120
- Price relative for 1995 = (x / 0.8x) * 100 = 125
- Price relative for 1996 = 100 (given)
- Price relative for 1997 = (1.5x / 0.8x) * 100 = 187.5
Therefore, the answer is not option (B).
c) For (1994-97) with (1997 as base year):
- Price relative for 1994 = (0.96x / 1.5x) * 100 = 64
- Price relative for 1995 = (x / 1.5x) * 100 = 66.67
- Price relative for 1996 = (x / 1.5x) * 100 = 66.67
- Price relative for 1997 = 100 (given)
Therefore, the answer is not option (C).
Hence, the correct answer is option (A) 150, 100, 120, 80 for (1994-97).
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In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer?
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In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer?.
In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is :a)150, 100, 120, 80 for (1994–97)b)135, 100, 125, 87 for (1994–97)c)140, 100, 120, 80 for (1994–97)d)None of these.Correct answer is option 'A'. Can you explain this answer?.
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