Question

Given below are the price quantity data with price quoted in Rs. per kg and production in quintals. Construct index number by Laspeyres method.

Commodities		2006		2007
	Price )Rs)	Qty	Price (Rs)	Qty
A	15	500	20	600
B	18	590	23	640
C	22	450	24	500

Answer 1

Steps: Σp₁q₀ = Sum total of product p₁ and q₀

Σp₀ q₀ = Sum total of product p₀ and q₀

P₀₁ = \(\cfrac{Σp_1q_0}{Σp_0q_0} \times 100\)

\(= \cfrac{34,370}{28,020}\times 100\)

= 122.66

Hence P₀₁ = 122.66