1.Using 2016 as the base year, calculate the Laspeyre’s Price Index for 2021. A 135.60 B 66.73 C 138.44 D 149.86 2.Using 2016 as the base year, calculate the Paasche’s Quantity Index for 2021. A 287.54 B 48.15 C 72.15 D 207.70
1.Using 2016 as the base year, calculate the Laspeyre’s Price Index for 2021.
A 135.60
B 66.73
C 138.44
D 149.86
2.Using 2016 as the base year, calculate the Paasche’s Quantity Index for 2021.
A 287.54
B 48.15
C 72.15
D 207.70
3.Using 2016 as the base year, calculate the Pasche’s Price Index for 2021.
A 149.86
B 138.60
C 207.70
D 66.73
4.Using 2016 as the base year, calculate the Laspeyre’s Quantity Index for 2021.
A 138.60
B 207.47
C 72.15
D 149.86
5.In general, consumers are price-takers; thus, they are expected to react to price changes by substituting ice-cream
flavours that have become relatively cheaper for those that have become relatively more expensive. This phenomenon is
consistent with the substitution effect. Substitution tends to cause a negative
relatives.
With regard to the observation above, and the indices calculated above, which of the following is false?
A The transaction data on the ice-cream sales is not indicative of substitution effect.
B The Paasche’s indices are relatively greater than the Laspeyre’s indices.
C The price and quantity relatives of the ice-cream data are
D The price and quantity relatives of the ice-cream data are
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