Index NumbersPYQ May 25Question 4098 of 197
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The prices of a commodity in the years 2015 and 2020 were 50 and 60 respectively. Price relative of 2015 on 2020 is

Options

A100
B110
C83.33
D120
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Correct Answer

✅ Option c — 83.33

All Options:

  • A100
  • B110
  • C83.33
  • D120

Detailed Solution & Explanation

The price relative of a year with respect to another year is defined as the percentage ratio of the price in the current year to the price in the base year.
Here, we want the price relative of 2015 with 2020 as the base year:
Price Relative=P2015P2020×100\text{Price Relative} = \frac{P_{2015}}{P_{2020}} \times 100 Where:
- Price in 2015 (P2015\displaystyle P_{2015}) = 50\displaystyle 50
- Price in 2020 (P2020\displaystyle P_{2020}) = 60\displaystyle 60

Substitute the values:
Price Relative=5060×100=56×100≈83.33\text{Price Relative} = \frac{50}{60} \times 100 = \frac{5}{6} \times 100 \approx 83.33
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.

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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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