Question

Compute consumer price index number using aggregative expenditure method.

Answer 1

C.P.I: I₀₁(A.E.M) = \(\frac{∑p_1q_0}{∑p_0q_0} \times 100;\)

Here budget = p₀q₀

∴ I₀₁ = \(\frac{285}{204}\) x 100 

= 139.71