The following table indicates the unit prices (in Rands) and quantities of three goods held in the national warehouse of a DIY (“do it yourself”) store for the years 2020 and 2021.   ITEM 2020-unit price (p0) 2020 quantity(q0) 2021-unit price(p1) 2021 quantity (q1) MINERAL SPIRITS 17.7 30 20.7 45 10mm spanner 37 60 49 50 25mm brush 42 30 48 40             Using 2020 as the base year, compute the price relatives in 2021 for mineral spirits and the 10mm spanner. Interpret your answers

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Author:Amos Gilat
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The following table indicates the unit prices (in Rands) and quantities of three goods held in the
national warehouse of a DIY (“do it yourself”) store for the years 2020 and 2021.

 

ITEM

2020-unit price (p0)

2020 quantity(q0)

2021-unit price(p1)

2021 quantity (q1)
MINERAL SPIRITS

17.7

30

20.7

45

10mm spanner

37

60

49

50

25mm brush

42

30

48

40

         

 

Using 2020 as the base year, compute the price relatives in 2021 for mineral spirits
and the 10mm spanner. Interpret your answers

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