Laspeyre’s price index number
\(P^L_{01} = \frac {\sum p_1q_0} {\sum p_0q_0}\times100\)
= 1280/1200 x 100
\(P^L_{01}\) = 106.6
Paasche’s price index number
\(P^P_{01} = \frac {\sum p_1q_0} {\sum p_0q_0}\times100\)
= 1040/973 x 100
\(P^P_{01}\) = 106.8
Fisher’s price index number
On an average, there is an increase of 6.6%, 6.8% and 6.7% in the price of the commodities by Laspeyre’s, Paasche’s and Fisher’s index number respectively for the current year 2010 as compared to the base year 2000.
