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If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.?
Most Upvoted Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
Explanation:
The index number of prices is a measure of the average level of prices of goods and services in a particular year as compared to the base year. In this case, the base year is 1984 and the index number of prices in 1994 is 250.
Calculating the rate of increase:
To calculate the rate of increase in prices, we use the formula:
Rate of increase = (Index number in the current year - Index number in the base year) / Index number in the base year x 100%
Substituting the values given in the question, we get:
Rate of increase = (250 - 100) / 100 x 100%
Rate of increase = 150%
Therefore, the correct answer is option (b) 150%.
Explanation of options:
Option (a) 250% is incorrect because it implies that the prices have increased by 250 times, which is not the case.
Option (c) 350% is incorrect because it implies that the prices have increased by 350 times, which is not the case either.
Option (d) None of these is incorrect because the correct answer is option (b) 150%.
Conclusion:
The rate of increase in prices from 1984 to 1994 is 150%. This means that prices have increased by 1.5 times on average over the 10-year period.
The index number of prices is a measure of the average level of prices of goods and services in a particular year as compared to the base year. In this case, the base year is 1984 and the index number of prices in 1994 is 250.
Calculating the rate of increase:
To calculate the rate of increase in prices, we use the formula:
Rate of increase = (Index number in the current year - Index number in the base year) / Index number in the base year x 100%
Substituting the values given in the question, we get:
Rate of increase = (250 - 100) / 100 x 100%
Rate of increase = 150%
Therefore, the correct answer is option (b) 150%.
Explanation of options:
Option (a) 250% is incorrect because it implies that the prices have increased by 250 times, which is not the case.
Option (c) 350% is incorrect because it implies that the prices have increased by 350 times, which is not the case either.
Option (d) None of these is incorrect because the correct answer is option (b) 150%.
Conclusion:
The rate of increase in prices from 1984 to 1994 is 150%. This means that prices have increased by 1.5 times on average over the 10-year period.
Community Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
B. 150% is the correct option .
As The base year index number (1984) will be 100 and current year(1994) is 250 So increase on an average is 150% .
As The base year index number (1984) will be 100 and current year(1994) is 250 So increase on an average is 150% .
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If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.?
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If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.? 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 the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.?.
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.? 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 the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by (a) 250% (b) 150% (c) 350% (d) None of these.?.
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