CIMA BA1 · Chapter 10 · Question 3 of 10
Price and quantity data for two items are: Item X: base price $4, base quantity 10, current price $5, current quantity 8 Item Y: base price $10, base quantity 5, current price $11, current quantity 7 What is the Laspeyres price index for the current period (base = 100, to one decimal place)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 116.7
Explanation
Laspeyres = sum(p1 x q0) / sum(p0 x q0) x 100. Numerator = 5 x 10 + 11 x 5 = 105. Denominator = 4 x 10 + 10 x 5 = 90. Index = 105 / 90 x 100 = 116.7.
More Index numbers MCQs
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