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a) price relative of single commodity . the price of a commodity in the year 1975 and 1980 were 25 and 30 respectively .find the price relatives (i)taking 1975 as base year ; taking 1980 as base year verify the truth of time reversal priperty. (b) consumer price index number goes up from 110 to 200 and the salary of a worker is also raised from rs.325 to rs 500 . does the worker really gain and if so by how much on real term ?
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a) price relative of single commodity . the price of a commodity in th...
(a) Price Relative of Single Commodity

Taking 1975 as Base Year:
- Formula for Price Relative: (Price in Given Year / Price in Base Year) x 100
- Price Relative in 1980: (30/25) x 100 = 120
- Interpretation: The price of the commodity increased by 20% in 1980 as compared to 1975.

Taking 1980 as Base Year:
- Formula for Price Relative: (Price in Given Year / Price in Base Year) x 100
- Price Relative in 1975: (25/30) x 100 = 83.33
- Interpretation: The price of the commodity decreased by 16.67% in 1975 as compared to 1980.

Verification of Time Reversal Property:
- Formula: (Price Relative of A to B) x (Price Relative of B to C) = Price Relative of A to C
- Using the above price relatives, we get:
- Price Relative of 1975 to 1980 x Price Relative of 1980 to 1975 = Price Relative of 1975 to 1975
- (120 x 0.8333) = 100
- Interpretation: The price relative of a commodity remains the same irrespective of the base year chosen.

(b) Consumer Price Index and Real Gain

Calculating the Real Gain:
- Formula: (New Salary / Base Year CPI) x 100 - 100 = % Change in Real Income
- Base Year CPI = 110
- % Change in Real Income = [(500 / 110) x 100 - 100] - [(325 / 110) x 100 - 100]
- % Change in Real Income = (454.55 - 195.45) = 259.09%
- Interpretation: The worker gains 259.09% in real terms due to the increase in salary and rise in CPI.
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a) price relative of single commodity . the price of a commodity in th...
120 ,250/3 decrease 90.91%
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a) price relative of single commodity . the price of a commodity in the year 1975 and 1980 were 25 and 30 respectively .find the price relatives (i)taking 1975 as base year ; taking 1980 as base year verify the truth of time reversal priperty. (b) consumer price index number goes up from 110 to 200 and the salary of a worker is also raised from rs.325 to rs 500 . does the worker really gain and if so by how much on real term ? Related: Unit I: Index Numbers (Part - 1)?
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a) price relative of single commodity . the price of a commodity in the year 1975 and 1980 were 25 and 30 respectively .find the price relatives (i)taking 1975 as base year ; taking 1980 as base year verify the truth of time reversal priperty. (b) consumer price index number goes up from 110 to 200 and the salary of a worker is also raised from rs.325 to rs 500 . does the worker really gain and if so by how much on real term ? Related: Unit I: Index Numbers (Part - 1)? 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 a) price relative of single commodity . the price of a commodity in the year 1975 and 1980 were 25 and 30 respectively .find the price relatives (i)taking 1975 as base year ; taking 1980 as base year verify the truth of time reversal priperty. (b) consumer price index number goes up from 110 to 200 and the salary of a worker is also raised from rs.325 to rs 500 . does the worker really gain and if so by how much on real term ? Related: Unit I: Index Numbers (Part - 1)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a) price relative of single commodity . the price of a commodity in the year 1975 and 1980 were 25 and 30 respectively .find the price relatives (i)taking 1975 as base year ; taking 1980 as base year verify the truth of time reversal priperty. (b) consumer price index number goes up from 110 to 200 and the salary of a worker is also raised from rs.325 to rs 500 . does the worker really gain and if so by how much on real term ? Related: Unit I: Index Numbers (Part - 1)?.
Solutions for a) price relative of single commodity . the price of a commodity in the year 1975 and 1980 were 25 and 30 respectively .find the price relatives (i)taking 1975 as base year ; taking 1980 as base year verify the truth of time reversal priperty. (b) consumer price index number goes up from 110 to 200 and the salary of a worker is also raised from rs.325 to rs 500 . does the worker really gain and if so by how much on real term ? Related: Unit I: Index Numbers (Part - 1)? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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