Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board Chapter 6. INDEX NUMBERS 5. Calculate Paasche's index from the given data

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.

 

Chapter 6. INDEX NUMBERS

5. Calculate Paasche's index from the given data:

Commodity	Base year		current year
	Price	Quantity	Price	Quantity
X	8	30	12	25
Y	10	42	20	16

Solution: -

Commodity	Base year		Current year
	p0	q0	p1	q1	p1q1	p0q1
X	8	30	12	25	300	200
Y	10	42	20	16	320	160
Total					620	360

Paasche's index = p1q1/p0q1

∑p1q1/∑p0q1×100

= 620/360×100

= 172.22