(a) To compute: The price index for an year.

Question

1) The table below gives the price and consumption (usage/sales) for two products x and y for four years. Using year 2000 as the base year calculate for each year, the a) Basic expenditure index Year b) Laspeyers price index, and c) Paasche price index Quantity x, q, Price of y, p, Price of Quantity y, q, х, р. 2000 R4 5 R3 3 2001 R5 R4 6. 2002 R6 4 R5 4 2003 R6 4 R7 4

Answer 1

Question

Chapter 10, Problem 18P

To determine

(a)

To compute:

The price index for an year.

To determine

(b)

To compute:

The price index for an year.

To determine

(c)

To compute:

The price index for an year.

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1) The table below gives the price and consumption (usage/sales) for two products x and y for four years. Using year 2000 as the base year calculate for each year, the a) Basic expenditure index Year b) Laspeyers price index, and c) Paasche price index Quantity x, q, Price of y, p, Price of Quantity y, q, х, р. 2000 R4 5 R3 3 2001 R5 R4 6. 2002 R6 4 R5 4 2003 R6 4 R7 4

Exercise 3 1) The table below gives the price and consumption (usage/sales) for two products x and y for four years. Using year 2000 as the base year calculate for each year, the b) Laspeyers price index, and Quantity x, q, a) Basic expenditure index Year c) Paasche price index Quantity y, q, Price of Price of y, Py х, р, 2000 R4 R3 3 2001 R5 6. R4 6. R5 R7 2002 R6 4 4 2003 R6 4 4 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) 3.95 Quantity Price (R) Quantity Price (R) Milk 2920 3100 4.10 3210 4.10 Bread 2190 3.60 2230 3.80 2200 4.00 Eggs (each) 0.60 7.20 14.00 16425 17563 0.60 17890 0.65 Butter 730 680 7.70 650 8.30 Cheese 1135 1086 14.9 1150 16.00 Margerine…

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