Question

Solve the following problem :

Find the Price Index Number using Simple Aggregate Method. Consider 1980 as base year.

Commodity	Price in 1980 (in ₹)	Price in 1985 (in ₹)
I	22	46
II	38	36
III	20	28
IV	18	44
V	12	16

Answer 1

Commodity	Price in 1980 (in ₹) (Base year)	Price in 1985 (in ₹) (Current year)
I	22	46
II	38	36
III	20	28
IV	18	44
V	12	16
Total	110	170

From the table, ${\displaystyle \sum {\text{p}}_0=110,\sum {\text{p}}_1=170}$

Price Index Number (P₀₁) = ${\displaystyle \frac{\sum {\text{p}}_1}{\sum {\text{p}}_0}\times 100}$

= ${\displaystyle \frac{170}{110}\times 100}$

= 154.55