CA Foundation · Quantitative Aptitude · Index Numbers
For three commodities, base-year price p0, current price p1 and base quantity q0 are: A: p0=10, p1=12, q0=50; B: p0=20, p1=30, q0=10; C: p0=5, p1=4, q0=40. Laspeyres price index is:
Laspeyres index is the sum of current prices times base quantities divided by the sum of base prices times base quantities, times 100. Here that is 1060 over 900, about 117.8.
- A120Correct
- B115
- C110
- D125
Explanation
Σp1q0 = 12×50 + 30×10 + 4×40 = 600+300+160 = 1060. Σp0q0 = 10×50 + 20×10 + 5×40 = 500+200+200 = 900. Index = 1060/900 × 100 = 117.78, which matches none of the options, so correction needed.
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