Chapter 14.1, Problem 14.7ACB

Annual U.S. craft beer production. While overall beer production in the United States has declined the past several years, craft beer production has increased dramatically. The table below lists the U.S. craft beer production (in millions of barrels) for the period 2004-2015.

1. a. Use 2004 as the base period to compute the simple index for this time series. Interpret the value for 2015.
2. b. Refer to part a. Is this an example of a quantity index or a price index?
3. c. Recompute the simple index using 2010 as the base period. Plot the two indexes on the same graph. What pattern do you observe?

Year	Craft Beer Production
2004	5.83
2005	6.29
2006	7.10
2007	7.98
2008	8.49
2009	0.07
2010	10.13
2011	11.46
2012	13.24
2013	15.51
2014	22.16
2015	24.52