Question #1: A) The following table gives average annual prices of eight commodities for the year 1956 and 1964. Compute consumer price index number for 1962 to 1964 based on 1956 by using family budget method and aggregative expenditure and interpret the results. (Hint: 1 maund = 40 kg) (12 Marks) Commodities Quantity Consumed Unit of price Prices (Rs.) 1956 1962 1963 1964 Wheat 20 kg Rs. Per maund 12 15 18 35 Rice 8 kg Rs. Per maund 40 45 24 65 Sugar 2 kg Rs. Per maund 40 50 30 22 Ghee 1 kg Rs. Per maund 110 120 75 84 Milk 25 kg Rs. Per kg 0.50 0.75 0.70 0.64 Vegetables 16 kg Rs. Per kg 0.25 0.50 0.45 0.65 Mutton 5 kg Rs. Per kg 3.00 4.00 3.75 2.75 Fuel 4 maund Rs. Per maund 2.50 3.00 2.8 3.40 B) The machinery in a factory is purchased for Rs. 50000 and the rate of depreciation is 6%. After how many years its value will be Rs. 20000? (08 Marks)