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The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively. Taking 1980 as the base year the price relative is:
- a)113.25
- b)83.33
- c)109.78
- d)None
Correct answer is option 'B'. Can you explain this answer?
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The prices of a commodity in the year 1975 and 1980 were 25 and 30 res...
Price Relative Calculation
To calculate the price relative, we need to compare the prices of a commodity in two different years. In this case, we are comparing the prices in the years 1975 and 1980.
Step 1: Determine the base year
The base year is the year to which we want to compare the prices. In this case, the base year is 1980.
Step 2: Calculate the price relative
The price relative is calculated by dividing the price in the current year by the price in the base year and multiplying it by 100.
Price Relative = (Price in Current Year / Price in Base Year) * 100
Using the given information, we can calculate the price relative as follows:
Price in 1975 = 25
Price in 1980 = 30
Price Relative = (30 / 30) * 100 = 100
Therefore, the price relative is 100.
Step 3: Interpretation of the price relative
The price relative indicates the percentage change in the price of a commodity from the base year to the current year. In this case, the price relative is 100, which means that the price of the commodity in 1980 is 100% of the price in 1980.
Comparison with the options
The correct answer is option B, which is 83.33. However, this does not match the calculated price relative of 100. Therefore, the correct answer is none of the given options (d).
Conclusion
The price relative is calculated by dividing the price in the current year by the price in the base year and multiplying it by 100. In this case, the price relative is 100, indicating that the price of the commodity in 1980 is 100% of the price in 1980. The correct answer is none of the given options.
To calculate the price relative, we need to compare the prices of a commodity in two different years. In this case, we are comparing the prices in the years 1975 and 1980.
Step 1: Determine the base year
The base year is the year to which we want to compare the prices. In this case, the base year is 1980.
Step 2: Calculate the price relative
The price relative is calculated by dividing the price in the current year by the price in the base year and multiplying it by 100.
Price Relative = (Price in Current Year / Price in Base Year) * 100
Using the given information, we can calculate the price relative as follows:
Price in 1975 = 25
Price in 1980 = 30
Price Relative = (30 / 30) * 100 = 100
Therefore, the price relative is 100.
Step 3: Interpretation of the price relative
The price relative indicates the percentage change in the price of a commodity from the base year to the current year. In this case, the price relative is 100, which means that the price of the commodity in 1980 is 100% of the price in 1980.
Comparison with the options
The correct answer is option B, which is 83.33. However, this does not match the calculated price relative of 100. Therefore, the correct answer is none of the given options (d).
Conclusion
The price relative is calculated by dividing the price in the current year by the price in the base year and multiplying it by 100. In this case, the price relative is 100, indicating that the price of the commodity in 1980 is 100% of the price in 1980. The correct answer is none of the given options.
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The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively. Taking 1980 as the base year the price relative is:a)113.25b)83.33c)109.78d)NoneCorrect answer is option 'B'. Can you explain this answer?
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The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively. Taking 1980 as the base year the price relative is:a)113.25b)83.33c)109.78d)NoneCorrect answer is option 'B'. 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 The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively. Taking 1980 as the base year the price relative is:a)113.25b)83.33c)109.78d)NoneCorrect answer is option 'B'. 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 The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively. Taking 1980 as the base year the price relative is:a)113.25b)83.33c)109.78d)NoneCorrect answer is option 'B'. Can you explain this answer?.
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