The following information was recorded in a toy store: Year 2016 Year 2017 Year 2018 Price Quantity Price Quantity Price Quantity Slime 6 50 9 60 10 56 Sticky tact 2 100 2 105 2 120 Stinky egg 4 60 4 50 6 60 Teddy Bear 10 30 11 26 12 24 Tortoise 8 40 11 39 12 36 Q3 The following information was recorded in a toy store: (a) By using the above data, compute the Laspeyres Price Index for year 2018 by using year 2016 as base year. (b) Interpret your answer in part (a)). (c) By using the above data, compute the Paasche Price Index for year 2018 by using year 2016 as base year.
The following information was recorded in a toy store: Year 2016 Year 2017 Year 2018 Price Quantity Price Quantity Price Quantity Slime 6 50 9 60 10 56 Sticky tact 2 100 2 105 2 120 Stinky egg 4 60 4 50 6 60 Teddy Bear 10 30 11 26 12 24 Tortoise 8 40 11 39 12 36 Q3 The following information was recorded in a toy store: (a) By using the above data, compute the Laspeyres Price Index for year 2018 by using year 2016 as base year. (b) Interpret your answer in part (a)). (c) By using the above data, compute the Paasche Price Index for year 2018 by using year 2016 as base year.
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter7: Integration
Section7.CR: Chapter 7 Review
Problem 88CR
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Question
Q3
The following information was recorded in a toy store:
| Year 2016 | Year 2017 | Year 2018 |
| Price | Quantity | Price | Quantity | Price | Quantity | |
| Slime | 6 | 50 | 9 | 60 | 10 | 56 |
| Sticky tact | 2 | 100 | 2 | 105 | 2 | 120 |
| Stinky egg | 4 | 60 | 4 | 50 | 6 | 60 |
| Teddy Bear | 10 | 30 | 11 | 26 | 12 | 24 |
| Tortoise | 8 | 40 | 11 | 39 | 12 | 36 |
Q3
The following information was recorded in a toy store:
(a) By using the above data, compute the Laspeyres Price Index for year 2018 by using year 2016 as base year.
(b) Interpret your answer in part (a)).
(c) By using the above data, compute the Paasche Price Index for year 2018 by using year 2016 as base year.
(d) Which item has experienced the greatest inflation rate from year 2017 to year 2018? (Just state your answer, no calculation is needed in part (d)).
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