Weighted average of price relatives method calculator

SolutionHelp

Item	Quantity	Price0	Price1
A	35	16	18
B	25	40	45
C	20	60	120
D	10	80	90
E	20	30	45
F	15	28	35

Item	Quantity	Price0	Price1
A	40	160	200
B	25	400	600
C	5	50	70
D	20	10	18
E	10	2	3

Example

1. Find Cost of living Index number by the Aggregate expenditure method
Item Quantity Price0 Price1
A 35 16 18
B 25 40 45
C 20 60 120
D 10 80 90
E 20 30 45
F 15 28 35

Solution:
Aggregate expenditure method :

Item	Quantity $q_0$	Price $p_0$	Price $p_1$	$p_0q_0$	$p_1q_0$
A	35	16	18	560	630
B	25	40	45	1000	1125
C	20	60	120	1200	2400
D	10	80	90	800	900
E	20	30	45	600	900
F	15	28	35	420	525
---	---	---	---	---	---
Total				$sum p_0q_0=4580$	$sum p_1q_0=6480$

Consumer price index number by Aggregate expenditure method

$I_L=(sum p_1q_0)/(sum p_0q_0) xx 100$

$=(6480)/(4580) xx 100$

$=141.48$

Thus, there is a rise of

$(141.48-100)=41.48%$ in Aggregate expenditure