Question

The best method to measure the relative change in prices of commodities is: *

1 point

Quantity index number

Value index number

Volume index number

Price index number

​

Answer 1

Answer:

In this method, the index number is equal to the sum of price relatives divided by the number of items and is calculated by using the following formula: 3. Weighted Aggregative Method: In this method, different weights are assigned to the items according to their relative importance

Explanation:

A value index is a measure (ratio) that describes change in a nominal value relative to its value in the base year. The index point figure for each point in time tells what percentage a given value is at that point in time of its respective value at the base point in time.