CA Foundation · Quantitative Aptitude · Index Numbers
A firm's sales were ₹2,40,000 in 2023 and ₹3,00,000 in 2024. The wholesale price index (same base) was 120 in 2023 and 150 in 2024. After deflating, the percentage change in real sales from 2023 to 2024 is:
Real sales did not change; the change is 0%. Deflating 2023 sales by index 120 gives ₹2,00,000 and deflating 2024 sales by index 150 also gives ₹2,00,000. The 25% rise in nominal sales was exactly offset by the 25% rise in prices.
- A0%Correct
- B25%
- C20%
- D10%
Explanation
Real sales 2023 = 2,40,000/120 × 100 = ₹2,00,000. Real sales 2024 = 3,00,000/150 × 100 = ₹2,00,000. So real sales are unchanged, i.e. 0%. The 25% figure is the nominal growth, which ignores deflation.
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