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Value Index relates
APrices alone (typical) (typical) (typical) (typical)
BQuantities alone (typical) (typical) (typical)
CCombined price × quantity in current and base periods
DProfit margins (typical) (typical) (typical)
Answer & Solution
Correct answer: C. Combined price × quantity in current and base periods
1. Value Index = (ΣP₁Q₁ / ΣP₀Q₀) × 100.
2. It reflects total expenditure change due to BOTH price and quantity changes.
3. Price index alone holds quantities fixed; quantity index alone holds prices fixed.
4. Hence (C) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 3 "Quantity and Value Index", §3.6 ¶§3.6_
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