Q.

1 Construct the consumer price index number for 1988 on the basis of 19871 from the
following data using: 
(1) Aggregate Expenditure Method 
(2) Family Budget Method.

Quantity Prices
Commodities consumed Unit
in 1987 1987 1988
A 6 quintals quintal 315.75 316.00
B 6 quintals quintal 305.00 308.00
C 1 quintal quintal 416.00 419.00
D 6 quintals quintal 528.00 610.00
E 4 kg kg 12.00 11.50
F 1 quintal quintal 1020.00 1015.00

Solution:
(1) The consumer price index number of 1988 by Aggregate Expenditure Method:
Quantity Prices
Consum
Commoditi
es
ed Unit 19871987 19881988 P1qo Poqo
1987 Po P1
qoqo
6 quint 316.00316. 1894.51894.
A 315.75 18961896
quintals al 00 5
6 quint 308.00308. 1830.01830.
B 305.00 18481848
quintals al 00 0
quint 419.00419.
C 1 quintal 416.00 419419 416.0416.0
al 00
6 quint 610.00610. 3168.03168.
D 528.00 36603660
quintals al 00 0
E 4 kg kg 12.00 11.50 4646 48.048.0
quint 1020.001020. 1020.01020.
F 1 quintal 1015 10151015
al 00 0

∑P1qo=8 ∑Poqo=83
 
884 76.5
The consumer price index number of 1988 is

AEM: - Price (p) = P 0 q 0