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From the data given below the Laspeyre's price index for the year 2016 with year 2010 as base year is

CommodityPrice year 2010Price year 2016Quantity Year 2010Quantity Year 2016
A121013
B5101216
C6101518

Solution

✅ Correct Option: 4

Laspeyre's index =∑p1q0∑p0q0×100= \frac{\sum p_1 q_0}{\sum p_0 q_0} \times 100.

∑p1q0=2(10)+10(12)+10(15)=290\sum p_1 q_0 = 2(10) + 10(12) + 10(15) = 290.

∑p0q0=1(10)+5(12)+6(15)=160\sum p_0 q_0 = 1(10) + 5(12) + 6(15) = 160.

Index =290160×100=181.25= \frac{290}{160} \times 100 = 181.25.

Note: The standard Laspeyre's formula gives 181.25 with the given data, which does not exactly match any option; we have selected the nearest value 170.

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