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Q.5. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for place is now (index number of prices of base period= 100) (a) 100 (b) 135 (c) 65 (d) 15?
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Q.5. If now the prices of all the commodities in a place have been dec...
The index number of prices represents the relative change in prices of commodities over a given period of time. In this case, we are given that the prices of all commodities in a place have decreased by 85% over the base period prices. We need to calculate the index number of prices for this place.

To calculate the index number of prices, we can use the following formula:

Index number of prices = (Current prices / Base period prices) * 100

Here, the base period prices are given as 100. So, we need to calculate the current prices.

Let's assume the current prices of commodities in the place are represented by C. We are given that the current prices have decreased by 85% over the base period prices. Mathematically, this can be represented as:

C = Base period prices - (85% * Base period prices)

Simplifying the equation, we get:

C = (100 - 85) / 100 * Base period prices
C = 15 / 100 * Base period prices
C = 0.15 * Base period prices

Substituting the value of C in the formula for the index number of prices, we get:

Index number of prices = (0.15 * Base period prices / Base period prices) * 100
Index number of prices = 0.15 * 100
Index number of prices = 15

Therefore, the index number of prices for the place is 15, which corresponds to option (d) in the given choices.

In conclusion, the index number of prices for the place is now 15, which indicates a significant decrease in prices compared to the base period.
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Q.5. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for place is now (index number of prices of base period= 100) (a) 100 (b) 135 (c) 65 (d) 15?
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Q.5. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for place is now (index number of prices of base period= 100) (a) 100 (b) 135 (c) 65 (d) 15? 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 Q.5. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for place is now (index number of prices of base period= 100) (a) 100 (b) 135 (c) 65 (d) 15? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q.5. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for place is now (index number of prices of base period= 100) (a) 100 (b) 135 (c) 65 (d) 15?.
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