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

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.9P

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