A small industrial concern uses three raw materials A, B and C in its manufacturing process. The prices, in thousands of rupees per tonne, of these three materials are shown below:
1995
4
60
36
2002
5
57
42
A
B
C
Using 1995 as the base year, calculate for 2002:
i)a simple aggregate price index ii)simple average of price
relatives
iii) Does either index suffer from any disadvantage?
