CAT 2003 Slot 2DILR Question 43

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Passage / Data

Answer the following question based on the information given below.

The following is the Wholesale Price Index (WPI) of a select list of items with the base year of 1993-94. In other words, all the item prices are made 100 in that year (1993-94). Price in all other years for an item are measured with respect to its price in the base year. For instance, the price of cement went up by 1% in 1994-95 as compared to 1993-94. Similarly, the price of power went up by 3% in 1996–97 as compared to 1993-94.

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Which item experienced continuous price rise during the ten-year period?

Answer & solution

  • Power

  • B

    Cement

  • C

    Wages

  • D

    Limestone

Solution

Power experiences a continuous price rise.

Cement shows a decline from 1996-97 to 1997-97 and 1998-99 to 1999-00.

Wages show a decline from 1998-99 to 1999-2000.

Limestone shows a decline from 1996-97 to 1997-98.

Hence, option (a).

CAT 2003 Slot 2 DILR Q43: Which item experienced continuous price rise during the ten-year period? — Solution | TheCATExam