kindly solve;
In 1996 the avg price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 t price realtive using 1995 as base (1995 price relative 100) Reduce the data is:
Ans is : 150,100,120,80 for (1994-97)
kidly guide how the index number for theyear 1997 is arrived at 80?
lets take price of the commodity for base year 1995
as 100 ( Same as index no.)
question is asked comparing all the prices with prices of year 1996
now in 1996 price is 120 (i.e 20% more than 1995)
in 1997 ... 96's price is 50% more than 97's price
lets take 97's price as X
now
X + .5X = 120 (i,e the price of 96)
on solving we get
x (i.e the price or index no. of 1997 as ) = 80
Regards
Tushar
(if still not able to get it ... let me know i'll upload the hand written solution )
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