If the price of a commodity rises from Rs. 80 to Rs. 100, its price relative is:
Correct answer: D. 125
- A. 80
- B. 100
- C. 120
- D. 125
Explanation
The price relative is current price divided by base price, multiplied by 100. Thus, 100 ÷ 80 × 100 equals 125, showing a 25 percent increase.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
Practise Index Numbers
30 free Index Numbers MCQs from Quantitative Methods, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Quantitative Methods questions like this
Quantitative Methods is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
More Index Numbers questions
The prices of two commodities rise from Rs. 10 and Rs. 20 to Rs. 12 and Rs. 25. What is the simple aggregative price index?
Which formula defines Laspeyres' price index?
Two commodities have price relatives of 120 and 150, with weights 4 and 6 respectively. What is their weighted average of price relatives?
The price index for a country is 125, while a person's money income is Rs. 50,000. What is the real income at base-period prices?
For commodities A and B, base prices and quantities are Rs. 4 and 10, and Rs. 6 and 5. Current prices are Rs. 5 and Rs. 8. What is the Laspeyres price index?
Which quantities are used in Paasche's price index?