Question
Calculate weight price relatives index from the following data.
|
Commodity |
Base year Price (Rs.) |
Current year Price (Rs.) |
Weight in Percentage (Rs.) |
|
A |
2 |
4 |
40 |
|
B |
5 |
6 |
30 |
|
C |
4 |
5 |
20 |
|
D |
2 |
3 |
10 |
Solution
|
Commodity |
Base year Price (Rs.) (Po) |
Current Year Price (Rs) (P1) |
Price Relatives  |
Weight in Percentage |
Weighted Price Relatives |
|
A |
2 |
4 |
 |
40 |
8000 |
|
B |
5 |
6 |
 |
30 |
3,600 |
|
C |
4 |
5 |
 |
20 |
2,550 |
|
D |
2 |
3 |
 |
10 |
1,500 |
|
ΣW = 100 |
Σ Weighted Price Relatives = 15,650 |
