Question

Explain the meaning of the Price Index Number.

Answer 1

1. One kind of index number that is generated by multiplying the ratio of the total prices of different commodities in the base year and the current year by 100 is called the price index number.
2. The formula for measuring price index number is as follows: Price Index Number P₀₁ = `(sum"p"_1)/(sum"p"_0) xx 100`