Question

If the prices of all commodities in a place have decreased 35% over the base
period prices, then the index number of prices of that place is now
(b) 135
(d) None of these
(a) 35
(C) 65​

Answer 1

The correct answer is C

Explanation:

• Index number of prices is the one which is defined as the prices of the goods and services that are bought or purchased through the household. And the economy manufactures the large number of different kinds of product.
• In this scenario, the index number of prices is computed as:

Let the Base year price be 100

So, the current year price decrease by 35%

Therefore, the current year is computed as:

Current year = Base year × Decrease by 35%

Current year = 100 × 35%

Current year = 35

Now, computing the index number of prices as:

Index number of prices = Base year - Current year

= 100 - 35

= 65

You can learn more from here about index number:

https://brainly.in/question/7907661

You can learn more from here about index number:

https://brainly.in/question/7968008