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The index of prices received and paid by farmers


Index of prices received by farmers is the price index associated with basic pricing for agricultural goods. Index of prices paid by farmers is related to the pricing of agricultural needs, such as fertilizer.

As with other indices, both indices are also a measure of the amount of change in prices of farm products sold and products purchased by farmers.

Figures of index received by farmers is influenced by factors:
1. purchase price of medicines needed by farmers
2. total production
3. season.

Figures of index paid by farmers is strongly influenced by the following things:
1. government policy
2. production costs
3. trade policy
4. value for money.

Wholesale price index (wholesaler)


Wholesale price index is an index number that indicates a change in the price of goods purchased by wholesalers from the consumer. Wholesale price index do not like the consumer price index specified by the smallest unit of quantity, but quantity determined in bulk sizes.

Price index is very useful for wholesaler to know the extent of the changes that occur in the purchase prices of merchandise. Also, the price index can be used as a basis for estimating price conditions that may occur in the future.

In addition, by knowing the wholesale price index, wholesalers can know the factors that caused the changes in these prices, so the knowledge about that price indexes can be used to set a floor price for consumers.

Large or small the wholesale price index is strongly influenced by the following factors:
1. production cost increases
2. trade policy
3. in the field of monetary policy
4. changes in the value of money.

Index number


The index number is a statistical measure to express the relative changes that occur from time to time one or more characteristics or other variables that are expressed as a percentage.
In economics known there are 3 kinds of index numbers as follows.

1. Price index number
Price index number is a measure that shows the price change from a period to another.

2. Quantity index numbers
Quantity index numbers are index numbers that indicate the changes that occurred in the number of commodities that are consumed from time to time.

3. Value index numbers
The value index number is the index numbers that indicate changes in the value of money from one period to another. The value can be obtained by the multiplication between price and quantity.

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