Index NumbersMCQMTP Dec 23 Series IQuestion 3923 of 197
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P1Q0=1360\displaystyle \sum P_1 Q_0 = 1360, P0Q0=1900\displaystyle \sum P_0 Q_0 = 1900P1Q1=1344\displaystyle \sum P_1 Q_1 = 1344, P0Q1=1880\displaystyle \sum P_0 Q_1 = 1880 then the Laspeyres Index number is

Options

A71\displaystyle 71
B139.70\displaystyle 139.70
C175\displaystyle 175
DNone of these
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Correct Answer

Option a71\displaystyle 71

All Options:

  • A71\displaystyle 71
  • B139.70\displaystyle 139.70
  • C175\displaystyle 175
  • DNone of these

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Detailed Solution & Explanation

We are given: - P1Q0=1360\displaystyle \sum P_1 Q_0 = 1360 - P0Q0=1900\displaystyle \sum P_0 Q_0 = 1900 The Laspeyres price index is: P01L=P1Q0P0Q0×100=13601900×10071.58%P_{01}^L = \frac{\sum P_1 Q_0}{\sum P_0 Q_0} \times 100 = \frac{1360}{1900} \times 100 \approx 71.58\% This rounds to 71\displaystyle 71. 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.

Key Concepts to Understand

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