Aspire Faculty ID #17264 · Topic: CUET UG 2022 Applied Mathematics · Just now
CUET UG 2022 Applied Mathematics

Given that $\sum p_0 q_0 = 700$, $\sum p_0 q_1 = 1450$, $\sum p_1 q_0 = 855$, $\sum p_1 q_1 = 1300$. Where subscripts $0$ and $1$ are used for base year and current year respectively. The Laspeyres’ price index number is:

Solution

Laspeyres price index:

$L=\frac{\sum p_1 q_0}{\sum p_0 q_0}\times 100$

Substitute values:

$L=\frac{855}{700}\times 100$

$=1.2214\times 100$

$=122.14$

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