Index NumbersMCQMTP May 20Question 3898 of 197
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The whole sale price index number or agricultural commodities in a given region at a given date is 280\displaystyle 280. The percentage increase in prices of agricultural commodities over the base year is:

Options

A380\displaystyle 380
B280\displaystyle 280
C180\displaystyle 180
D80\displaystyle 80
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Correct Answer

✅ Option c — 180\displaystyle 180

All Options:

  • A380\displaystyle 380
  • B280\displaystyle 280
  • C180\displaystyle 180
  • D80\displaystyle 80

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Detailed Solution & Explanation

We are given: - Wholesale Price Index of agricultural commodities = 280\displaystyle 280 An index level of 280 means the prices are 280%\displaystyle 280\% of the base year price level. The percentage increase in prices over the base year (where base index is 100) is: Percentage Increase=280%−100%=180%\text{Percentage Increase} = 280\% - 100\% = 180\% *(Note: Although some answer keys point to Option A due to incorrect summation (280+100\displaystyle 280 + 100), the mathematically correct percentage increase is 180%, which corresponds to Option C).* Hence, **Option C** 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.

Key Concepts to Understand

Index Number

A statistical device for measuring changes in the magnitude of a group of related variables (like prices or production) over time.

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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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