Question

Use the following information to find

(i) fixed base index numbers with the year 2008 as the base year and

(ii) the index numbers by taking the average price of the years 2008 and 2009 as the base year price:

year	2008	2009	2010	2011	2012	2013	2014
price	32	38	40	42	45	60	65

Answer 1

(i) Base year = 2008

(ii) Base year = Average of prices of the year 2008 and 2009:

Average price of 2008 and 2009 p₀

=\(\cfrac{( Price\,of\, 2008)+( Price\, of\, 2009)}{2}\)

= \(\cfrac{32+38}{2}\)

= \(\cfrac{70}{2}\) = ₹ 35