Index NumbersMCQPYQ June 22Question 3806 of 197
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Price relative is-

Options

APnP0×100\displaystyle \frac{P_n}{P_0} \times 100
BP\displaystyle P
CP0\displaystyle P_0
DP1P0\displaystyle \frac{P_1}{P_0}
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Correct Answer

✅ Option a — PnP0×100\displaystyle \frac{P_n}{P_0} \times 100

All Options:

  • APnP0×100\displaystyle \frac{P_n}{P_0} \times 100
  • BP\displaystyle P
  • CP0\displaystyle P_0
  • DP1P0\displaystyle \frac{P_1}{P_0}

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Detailed Solution & Explanation

The **price relative** of a commodity is the ratio of its price in the current year (Pn\displaystyle P_n) to its price in the base year (P0\displaystyle P_0), typically expressed as a percentage: Price Relative=PnP0×100\text{Price Relative} = \frac{P_n}{P_0} \times 100 Hence, **Option A** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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More Questions from Index Numbers

In price index, when a new commodity is required to be added, which of the following index is used?

Fisher's ideal formula for calculating index number satisfies the ________

Shifted Price Index = Original Price IndexPrice Index of the year on which it has to be shifted×100\displaystyle \frac{\text{Original Price Index}}{\text{Price Index of the year on which it has to be shifted}} \times 100

If Laspeyres's Index Number is 250 and Paasche's Index Number is 160, then Fisher's Index number is

If ∑P0q0=240\displaystyle \sum P_0q_0 = 240, ∑P1q0=480\displaystyle \sum P_1q_0 = 480, ∑P0q1=600\displaystyle \sum P_0q_1 = 600 and ∑P1q1=192\displaystyle \sum P_1q_1 = 192, then Laspeyres's Index Number is

If ΣPnqn=249\displaystyle \Sigma P_n q_n = 249, ΣP0q0=150\displaystyle \Sigma P_0 q_0 = 150, ΣPnq0=145\displaystyle \Sigma P_n q_0 = 145 and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is

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