Price and quantity index: indicators of business sustainability

Abstract

Theory of Index number has been developed mainly in the context of price statistics. In view of that, this study analysed the price and quantity index as indicators of business sustainability. A brief comparison between price statistics and commodities statistics of some household commodities is carried out in this study. The essence of price statistics is the need to monitor the evolution of prices, isolating the price developments from changes in prices and quantities. In this paper, an attempt has been made to apply the index number on some selected commodities, using a questionnaire to obtain information on prices of those commodities directly from the retailers in some selected markets within Ondo town, Ondo State. The result obtained shows that there is a significant increase in the prices of those commodities which might be because of the Incidence of COVID-19 in year 2020, while the quantity is fixed and remain constant.