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Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52?
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Given below are the data on prices of some consumer goods and the weig...
Calculation of Price Index Number for the Year 1985 (Base 1984 = 100)
Items | Unit | 1984 | 1985 | Weight | Weighted Average of Price Relative Index
--- | --- | --- | --- | --- | ---
Wheat | Kg. | 0.50 | 0.75 | 2 | (0.75/0.50) x 100 x 2 = 300
Milk | Litre | 0.60 | 0.75 | 5 | (0.75/0.60) x 100 x 5 = 625
Egg | Dozen | 2.00 | 2.40 | 4 | (2.40/2.00) x 100 x 4 = 480
Sugar | Kg. | 1.80 | 2.10 | 8 | (2.10/1.80) x 100 x 8 = 933.33
Shoes | Pair | 8.00 | 10.00 | 1 | (10.00/8.00) x 100 x 1 = 125
Total | --- | --- | --- | 20 | 2463.33
Weighted Average of Price Relative Index = (2463.33/20) = 123.17
Therefore, the Price Index Number for the Year 1985 (Base 1984 = 100) is 123.17.
Explanation:
- The price index number measures the average change in the prices of a basket of goods and services over a given period of time.
- In this case, the basket of goods consists of wheat, milk, eggs, sugar, and shoes.
- The weights attached to each item represent the relative importance of that item in the basket of goods.
- To calculate the price index number, we first calculate the price relative for each item by dividing the price of the item in 1985 by the price of the item in 1984 and multiplying by 100.
- We then multiply the price relative for each item by its weight to get the weighted price relative.
- Finally, we add up the weighted price relatives for all items to get the weighted average of price relative index, which is the price index number for the year 1985.
- In this case, the price index number is 123.17, which means that the overall price level of the basket of goods increased by 23.17% from 1984 to 1985.
Items | Unit | 1984 | 1985 | Weight | Weighted Average of Price Relative Index
--- | --- | --- | --- | --- | ---
Wheat | Kg. | 0.50 | 0.75 | 2 | (0.75/0.50) x 100 x 2 = 300
Milk | Litre | 0.60 | 0.75 | 5 | (0.75/0.60) x 100 x 5 = 625
Egg | Dozen | 2.00 | 2.40 | 4 | (2.40/2.00) x 100 x 4 = 480
Sugar | Kg. | 1.80 | 2.10 | 8 | (2.10/1.80) x 100 x 8 = 933.33
Shoes | Pair | 8.00 | 10.00 | 1 | (10.00/8.00) x 100 x 1 = 125
Total | --- | --- | --- | 20 | 2463.33
Weighted Average of Price Relative Index = (2463.33/20) = 123.17
Therefore, the Price Index Number for the Year 1985 (Base 1984 = 100) is 123.17.
Explanation:
- The price index number measures the average change in the prices of a basket of goods and services over a given period of time.
- In this case, the basket of goods consists of wheat, milk, eggs, sugar, and shoes.
- The weights attached to each item represent the relative importance of that item in the basket of goods.
- To calculate the price index number, we first calculate the price relative for each item by dividing the price of the item in 1985 by the price of the item in 1984 and multiplying by 100.
- We then multiply the price relative for each item by its weight to get the weighted price relative.
- Finally, we add up the weighted price relatives for all items to get the weighted average of price relative index, which is the price index number for the year 1985.
- In this case, the price index number is 123.17, which means that the overall price level of the basket of goods increased by 23.17% from 1984 to 1985.
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Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52?
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Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52? 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 Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52?.
Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52? 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 Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52?.
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Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52?, a detailed solution for Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52? has been provided alongside types of Given below are the data on prices of some consumer goods and the weights attached to the various items Compute price index number for the year 1985 (Base 1984 = 100) Items Unit 1984 1985 Weight Wheat Kg. 0.50 0.75 2 Milk Litre 0.60 0.75 5 Egg Dozen 2.00 2.40 4 Sugar Kg. 1.80 2.10 8 Shoes Pair 8.00 10.00 1 Then weighted average of price Relative Index is : (a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52? theory, EduRev gives you an
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