From the following data, construct a weighted index number for 20… - Vidyadip

Question

From the following data, construct a weighted index number for $2010$ with $2000$ as base year:

Items	Weight	Prices
Items	Weight	2000	2010
Wheat	15	10	15
Rice	10	8	16
Pulses	5	5	10
Milk	4	2	4
Oil	6	4	6
Sugar	7	3	6
Salt	3	1	2

✓

Answer

Items	Weight	% Weight	Price		Price relative $\Big(\frac{\text{p}_1}{\text{p} _0}\times100\Big)$
Items	Weight	% Weight	2000 $(p_0)$	2011 $(p_1)$
Wheat	15	30	10	15	150
Rice	10	20	8	16	200
Pulses	5	10	5	10	200
Milk	4	8	2	4	200
Oil	6	12	4	6	150
Sugar	7	14	3	6	200
Salt	3	6	1	2	200

Weighted Price Index is:
$\text{p}_{01}=\frac{\Sigma\text{wi}\Big(\frac{\text{P}_{11}}{\text{P}_{01}}\times100\Big)}{\Sigma\text{wi}}$
$=\frac{30\times150+20\times200+10\times200+8\times200+12\times150+14\times200+6\times200}{100}$
$=\frac{4500+4000+2000+1600+1800+2800+1200}{100}$
$\text{p}_{01}=\frac{17900}{100}=179$
$\therefore$ The Price Index has risen by $79\%$.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Index Numbers→Index Numbers — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Read the following information carefully and answer the questions 1-2 on the basis of the same:
In a perfectly competitive market, a firm believes that it can sell as many units of the good as it wants by setting a price less than or equal to the market price. But, if this is the case, surely there is no reason to set a price lower than the market price. In other words, should the firm desire to sell some amount of the good, the price that it sets is exactly equal to the market price. A firm earns revenue by selling the good that it produces in the market. Let the market price of a unit of the good be p. Let q be the quantity of the good produced, and therefore sold, by the firm at price p. Then, total revenue (TR) of the firm is defined as the market price of the good (p) multiplied by the firm's output (q). Hence, TR = p x q.
1. State the relationship between marginal revenue and total revenue.
2. Under perfect competition, rate of TR never declines. Do you agree?"

What do you mean by 'classification of data'? State the different methods of classification of data.

Wages of 50 workers are given. Present them in the form of exclusive frequency distribution with class interval as 40–50.
95, 92, 91, 90, 88, 82, 86, 87, 87, 88, 70, 72, 76, 77, 77, 79, 79, 79, 78, 78, 68, 67, 67, 66, 65, 63, 63, 63, 63, 64, 58, 59, 60, 60, 60, 60, 61, 62, 62, 62, 55, 55, 55, 56, 57, 54, 53, 52, 52, 50.

What is a cumulative frequency distribution? What are its two types?

Give some differences between mean deviation and standard deviation.

What are the advantages and disadvantages of tabular presentation of data?

Read the following case study carefully and answer the questions 1-2 on the basis of the same:
The production function is a mathematical expression which relates the quantity of factor inputs to the quantity of outputs that result. The short run production function is defined in economics as a period of time where at least one factor of production is assumed to be fixed. The analysis of short run production sets the stage to better understand the supply-side of the market. How producers respond to price depends, in part, on their ability to combine inputs to produce output. This ability is guided by the law of diminishing marginal returns, which states that the productivity of a variable input declines as more is added to a fixed input. If productivity declines, then more of the variable input is needed as the quantity produced increases. This results in an increase in production cost, which means producers need to receive a higher price.
- Bashir, Furrukh and others, Estimation of Short Run Production Function:
A Case Study of Shakarganj Mills Limited, 2011
1. Spell out the basic difference between the 'law of variable proportions', and 'returns to scale'.
2. (i) Increasing returns to a factor are indicated whenever there it true? is increase in total product. Is
(ii) Diminishing returns to a factor must lead to a fall in marginal product as well as total product. Is it true?

A consumer spends $₹200$ on a good priced at $₹5$ per unit. When the price falls by $20$ per cent, he continues to spend $₹200.$ Find the price elasticity of demand by percentage method.

From the following schedule, find out the level of output at which the producer is in equilibrium. Give reasons for your answer

Output (Units)	1	2	3	4	5	6	7
Price (Rs.)	24	24	24	24	24	24	24
Total Cost	26	50	72	92	115	139	165

Construct the index number by simple average of price relative method and by simple aggregative method:

Commodity	A	B	C	D	E
Price in 2014 (₹)	16	40	35	5.25	2
Price in 2015 (₹)	20	60	50	6.25	1.5