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In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:
- a)8,. 75
- b)150,80
- c)75,125
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
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In 1976 the average price of a commodity was 20% more than in 1975 but...
Given Information:
- In 1976, the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977.
- Price relatives using 1975 as the base year (1975 price relatives = 100)
To find: The reduced date
Solution:
Let's assume the price of the commodity in 1974 was x.
According to the question,
- Price of the commodity in 1976 = 0.8x
- Price of the commodity in 1975 = 1.2(0.8x) = 0.96x
- Price of the commodity in 1977 = (0.8x)/1.5 = 0.533x
Now, let's calculate the price relatives using 1975 as the base year:
- Price relative in 1974 = (x/x) x 100 = 100
- Price relative in 1975 = (0.96x/x) x 100 = 96
- Price relative in 1976 = (0.8x/x) x 100 = 80
- Price relative in 1977 = (0.533x/x) x 100 = 53.3
To find the reduced date, we need to find the year in which the price relative is less than 100 (i.e., decreased).
From the above calculations, we can see that the price relative in 1976 is less than 100, which means the price decreased in 1976.
Therefore, the reduced date is 1976.
Answer: Option B (150, 80)
- In 1976, the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977.
- Price relatives using 1975 as the base year (1975 price relatives = 100)
To find: The reduced date
Solution:
Let's assume the price of the commodity in 1974 was x.
According to the question,
- Price of the commodity in 1976 = 0.8x
- Price of the commodity in 1975 = 1.2(0.8x) = 0.96x
- Price of the commodity in 1977 = (0.8x)/1.5 = 0.533x
Now, let's calculate the price relatives using 1975 as the base year:
- Price relative in 1974 = (x/x) x 100 = 100
- Price relative in 1975 = (0.96x/x) x 100 = 96
- Price relative in 1976 = (0.8x/x) x 100 = 80
- Price relative in 1977 = (0.533x/x) x 100 = 53.3
To find the reduced date, we need to find the year in which the price relative is less than 100 (i.e., decreased).
From the above calculations, we can see that the price relative in 1976 is less than 100, which means the price decreased in 1976.
Therefore, the reduced date is 1976.
Answer: Option B (150, 80)
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In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect answer is option 'B'. Can you explain this answer?
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In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect 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 In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect 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 In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect 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 In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect 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 In 1976 the average price of a commodity was 20% more than in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relatives = 100) then the reduce date is:a)8,. 75b)150,80c)75,125d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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