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Index number in the base period is always taken as

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200

100

answer is D.

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Detailed Solution

Let

P

be the index number
Let

\sum_{}^{} P_{1}

be the value of commodity in current period
Let

\sum_{}^{} P_{0}

be the value of commodity in base period
P =

\frac{\sum_{}^{} P_{1}}{\sum_{}^{} P_{0}}

\times

100
For calculating the Index number in base period, base period = current period

\sum_{}^{} P_{1}

\sum_{}^{} P_{0}

P =

1

\times

100 = 100
Index number in the base period is always taken as 100.
So, the correct answer is “Option 4”.

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