Here, quantity (consumption) of items and their total expenditure are given. We obtain the price per unit of item using the formula,
Price per unit = \(\frac{Total \,expenditure} { Quantity }\)
We take p0 = Price in 2013,
p1 = Price in 2015,
q0 = Quantity in 2013
and q1 = Quantity in 2015.
The table for calculation is prepared as follows:
Paasche’s index number:
\(I_p=\frac{\sum {p_1\,q_1}}{\sum{p_0\,q_1}}\)
\(=\frac{1804.2}{942}\)
= 1.53
Fisher’s index number: