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If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100)
  • a)
    100
  • b)
    135
  • c)
    65
  • d)
    None of these
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
If now the prices of all the commodities in a place have been decrease...
Explanation:

- The formula to calculate the price index number is:
Price index number = (Price of commodity in current period / Price of commodity in base period) x 100
- Let's assume the price of a commodity in the base period was Rs. 100.
- If the prices of all commodities have decreased by 85%, the new price of the commodity in the current period will be:
New price = 100 - (85% of 100) = Rs. 15
- Using the formula, we can calculate the price index number as:
Price index number = (15/100) x 100 = 15
- Therefore, the answer is option D, "None of these". The price index number is not 100, 135, or 65, but 15, indicating a significant decrease in prices.
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If now the prices of all the commodities in a place have been decrease...
Answer is 15 (100-85)
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If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100)a)100b)135c)65d)None of theseCorrect answer is option 'D'. Can you explain this answer?
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If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100)a)100b)135c)65d)None of theseCorrect answer is option 'D'. 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 If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100)a)100b)135c)65d)None of theseCorrect answer is option 'D'. 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 If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100)a)100b)135c)65d)None of theseCorrect answer is option 'D'. Can you explain this answer?.
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