Suppose a person would earn Rs. 10,000 in base period. Suppose the cost of living index increases by 20over base period. Then the employers of that person increase his salary by Rs. 1500. Which of the following option is TRUE?

  • He is just able to maintain the same standard of living as in base period.
  • He should claim Rs 500/­ as Dearness Allowance.
  • He can improve his standard of living as compared to base period.
  • He should claim Rs 2,000 as Dearness Allowance.

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Suppose a person would earn Rs. 10,000 in base period. Suppose the cost of living index increases by
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