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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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