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Identify the prices for the base year (2005) and the current year (2010).
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4 stepsIdentify the prices for the base year (2005) and the current year (2010).
Prices in 2005 ():
Commodity A: 12
Commodity B: 16
Commodity C: 10Prices in 2010 ():
Commodity A: 20
Commodity B: 25
Commodity C: 12Calculate the sum of prices for the base year ().
Calculate the sum of prices for the current year ().
Apply the formula for the Price Index Number using the simple aggregative method.
The formula is:
Substitute the calculated sums into the formula:
The Price Index Number using the simple aggregative method is .
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