2) Below is a table of items consumed in a hotel for three years together with the average price of each item for each of the three years. Using 2003 as the base year, calculate for each subsequent year, the a) Basic expenditure index b) Laspeyers price index, and c) Paasche price index d) Laspeyers volume index e) Paasche volume index Item 2003 2004 2005 Quantity | Price (R) Quantity Price (R) Quantity Price (R) Milk 2920 3.95 3100 4.10 3210 4.10 Bread 2190 3.60 2230 3.80 2200 4.00 Eggs (each) 16425 0.60 17563 0.60 17890 0.65 Butter 730 7.20 680 7.70 650 8.30 Cheese 1135 14.00 1086 14.9 1150 16.00 Margerine 1574 6.80 1700 7.20 1720 7.50
2) Below is a table of items consumed in a hotel for three years together with the average price of each item for each of the three years. Using 2003 as the base year, calculate for each subsequent year, the a) Basic expenditure index b) Laspeyers price index, and c) Paasche price index d) Laspeyers volume index e) Paasche volume index Item 2003 2004 2005 Quantity | Price (R) Quantity Price (R) Quantity Price (R) Milk 2920 3.95 3100 4.10 3210 4.10 Bread 2190 3.60 2230 3.80 2200 4.00 Eggs (each) 16425 0.60 17563 0.60 17890 0.65 Butter 730 7.20 680 7.70 650 8.30 Cheese 1135 14.00 1086 14.9 1150 16.00 Margerine 1574 6.80 1700 7.20 1720 7.50
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 5SCQ: How to Measure Changes in the Cost of Living introduced a number of different price indices. Which...
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