Correct Answer - Option 1 : net increase of 2.5% in price.

**Fomula used**

Simple aggregative method = P_{01 }= ∑p_{1}/∑p_{0 } × 100

∑p_{1} = Price of all commodities in the current year

∑p0 = Price of all commodities in base year

**Calculation:**

∑p0 = 600 + 700 + 400 + 300 = 2000

∑p1 = 700 + 600 + 480 + 270 = 2050

Net Price changes in Percentage

= P_{01} = 2050/2000 × 100

= 102.5

**∴ The price of commodities in 2017 is increased by 2.5% from 2016**

**Simple Aggregative Method = **In it** **the total price of commodities in a given (current) year is divided by the total price of commodities in a base year and expressed as a percentage.** **

**Formula = **

P01 = ∑p1/∑p0 × 100

∑p1 = Price of all commodities in the current year

∑p0 = Price of all commodities in base year