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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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Verified Answer
In 1996 the average price of a commodity was 20% more than in 1995 but...
Let say 1975 Price = 100
1976 price = 100 + (20/100)100 = 120
20% less than 1974 = 120
=> 1974 Price * ( 1 - 0.2) = 120
=> 1974 Price = 150
50% more than 1977 = 120
=> 1977 price * ( 1 + 0.5) = 120
=> 1977 price = 80
1974 = 150
1975 = 100
1976 = 120
1977 = 80
Most Upvoted Answer
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 but 20% less than in 1994.
- In 1996, the commodity price was 50% more than in 1997.
To find:
- The price relatives for the years 1994, 1995, 1996, and 1997 using 1995 as the base year.
Solution:
Let the commodity price in 1995 be x.
According to the question,
- The price in 1994 = 120% of x = 1.2x
- The price in 1996 = 120% of the price in 1995 = 1.2x * 120/100 = 1.44x
- The price in 1997 = 50% less than the price in 1996 = 1.44x * 50/100 = 0.72x
Now, we can calculate the price relatives using 1995 as the base year:
- The price relative for 1994 = (1.2x / x) * 100 = 120
- The price relative for 1995 = (x / x) * 100 = 100
- The price relative for 1996 = (1.44x / x) * 100 = 144
- The price relative for 1997 = (0.72x / x) * 100 = 72
Reducing the data to the given options:
a) 150, 100, 120, 80 for (1994 - 97)
- The price relative for 1994 is given as 150, which is not correct (we calculated it as 120).
- The price relative for 1995 is given as 100, which is correct.
- The price relative for 1996 is given as 120, which is correct (we calculated it as 144).
- The price relative for 1997 is given as 80, which is correct (we calculated it as 72).
b) 135, 100, 125, 87, for (1994 - 97)
- None of the price relatives match with our calculated values.
c) 140, 100, 120, 80 for (1994 - 97)
- The price relative for 1994 is given as 140, which is not correct (we calculated it as 120).
- The price relative for 1995 is given as 100, which is correct.
- The price relative for 1996 is given as 120, which is correct (we calculated it as 144).
- The price relative for 1997 is given as 80, which is correct (we calculated it as 72).
d) None of these
- Option c is the correct answer.
Therefore, the correct option is (c) 140, 100, 120, 80 for (1994 - 97).
- In 1996, the commodity price was 20% more than in 1995 but 20% less than in 1994.
- In 1996, the commodity price was 50% more than in 1997.
To find:
- The price relatives for the years 1994, 1995, 1996, and 1997 using 1995 as the base year.
Solution:
Let the commodity price in 1995 be x.
According to the question,
- The price in 1994 = 120% of x = 1.2x
- The price in 1996 = 120% of the price in 1995 = 1.2x * 120/100 = 1.44x
- The price in 1997 = 50% less than the price in 1996 = 1.44x * 50/100 = 0.72x
Now, we can calculate the price relatives using 1995 as the base year:
- The price relative for 1994 = (1.2x / x) * 100 = 120
- The price relative for 1995 = (x / x) * 100 = 100
- The price relative for 1996 = (1.44x / x) * 100 = 144
- The price relative for 1997 = (0.72x / x) * 100 = 72
Reducing the data to the given options:
a) 150, 100, 120, 80 for (1994 - 97)
- The price relative for 1994 is given as 150, which is not correct (we calculated it as 120).
- The price relative for 1995 is given as 100, which is correct.
- The price relative for 1996 is given as 120, which is correct (we calculated it as 144).
- The price relative for 1997 is given as 80, which is correct (we calculated it as 72).
b) 135, 100, 125, 87, for (1994 - 97)
- None of the price relatives match with our calculated values.
c) 140, 100, 120, 80 for (1994 - 97)
- The price relative for 1994 is given as 140, which is not correct (we calculated it as 120).
- The price relative for 1995 is given as 100, which is correct.
- The price relative for 1996 is given as 120, which is correct (we calculated it as 144).
- The price relative for 1997 is given as 80, which is correct (we calculated it as 72).
d) None of these
- Option c is the correct answer.
Therefore, the correct option is (c) 140, 100, 120, 80 for (1994 - 97).
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Community Answer
In 1996 the average price of a commodity was 20% more than in 1995 but...
In 1995 relative price is 100
in 1996 the average price is20%more than in 1995 (20%of 100 is 20)ie 100+20=120
in 1994 the average price is than 1996by 20 %(20% of 150 is 30 so 150-120=30)
in 1996 the average price is more than 1997by 50% (50% of 80is 40)120-80=40
is for 1994 =150
1995=100
1996=120
1997=80
in 1996 the average price is20%more than in 1995 (20%of 100 is 20)ie 100+20=120
in 1994 the average price is than 1996by 20 %(20% of 150 is 30 so 150-120=30)
in 1996 the average price is more than 1997by 50% (50% of 80is 40)120-80=40
is for 1994 =150
1995=100
1996=120
1997=80
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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 theseCorrect 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 theseCorrect 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 theseCorrect 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 theseCorrect 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 theseCorrect 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 theseCorrect 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 theseCorrect answer is option 'A'. Can you explain this answer?.
Solutions 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 theseCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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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 theseCorrect answer is option 'A'. Can you explain this answer?, a detailed solution 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 theseCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of 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 theseCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice 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 theseCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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