a family budget enquiry revealed the information that/ weights used were : Food 30, Clothing 5, Rent 8 ,Fuel 5, Miscellaneous 2. calculate cost of living index number if average increase in the price of groups over base period were 35,60,50,80,60 respectively.
If a person from such group was earning Rs. 12000in base year , what should be his earnings in current period in order to maintain same standard of living at that of in base year ?
Answers
Given : a family budget enquiry revealed the information that/ weights used were : Food 30, Clothing 5, Rent 8 ,Fuel 5, Miscellaneous 2
average increase in the price of groups over base period were 35,60,50,80,60 respectively.
To Find : a person from such group was earning Rs. 12000in base year , what should be his earnings in current period in order to maintain same standard of living at that of in base year
Solution:
Food 30, Clothing 5, Rent 8 ,Fuel 5, Miscellaneous 2.
Total = 50
Earning = 12000
Expenses on Food = (30/50) * 12000 = 7200
Expenses on Clothing = (5/50) * 12000 = 1200
Expenses on Rent = (8/50) * 12000 = 1920
Expenses on Fuel = (5/50) * 12000 = 1200
Expenses on Miscellaneous = (2/50) * 12000 = 480
New expense of Food = 7200 + (35/100)7200 = 9720
New expense of Clothing = 1200 + (60/100)7200 = 1920
New expense of Rent = 1920 + (50/100)7200 = 2880
New expense of Fuel = 1200 + (80/100)7200 = 2160
New expense of Miscellaneous = 480 + (60/100)7200 = 768
New expenses = 17748
17748 should be his earnings in current period in order to maintain same standard of living at that of in base year
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Given : a family budget enquiry revealed the information that/ weights used were : Food 30, Clothing 5, Rent 8 ,Fuel 5, Miscellaneous 2
average increase in the price of groups over base period were 35,60,50,80,60 respectively.
To Find : a person from such group was earning Rs. 12000in base year , what should be his earnings in current period in order to maintain same standard of living at that of in base year
Solution:
Food 30, Clothing 5, Rent 8 ,Fuel 5, Miscellaneous 2.
Total = 50
Earning = 12000
Expenses on Food = (30/50) * 12000 = 7200
Expenses on Clothing = (5/50) * 12000 = 1200
Expenses on Rent = (8/50) * 12000 = 1920
Expenses on Fuel = (5/50) * 12000 = 1200
Expenses on Miscellaneous = (2/50) * 12000 = 480
New expense of Food = 7200 + (35/100)7200 = 9720
New expense of Clothing = 1200 + (60/100)7200 = 1920
New expense of Rent = 1920 + (50/100)7200 = 2880
New expense of Fuel = 1200 + (80/100)7200 = 2160
New expense of Miscellaneous = 480 + (60/100)7200 = 768
New expenses = 17748
17748 should be his earnings in current period in order to maintain same standard of living at that of in base year
learn More:
From the following data for the 5 groups combined Group weight ...
brainly.in/question/12817830
The weekly observations on cost of living index in a certain city for ...
brainly.in/question/15924385