Calculate a price index for every year, with year 4 as the base year, so in the blanks, you will have: • Blank #1 = Price Index for Year 1 • Blank #2 = Price Index for Year 2 • Blank #3 = Price Index for Year 3 • Blank #4 = Price Index for Year 4

Calculate a price index for every year, with year 4 as the base year, so in the blanks, you will have: • Blank #1 = Price Index for Year 1 • Blank #2 = Price Index for Year 2 • Blank #3 = Price Index for Year 3 • Blank #4 = Price Index for Year 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The total price of purchasing a basket of goods in the United Kingdom over four
years is:
• year 1= £940,
• year 2=£970,
• year 3=£1000,
• year 4=£1070.
Calculate a price index for every year, with year 4 as the base year, so in the blanks,
you will have:
• Blank #1
• Blank #2 = Price Index for Year 2
Price Index for Year 1
Blank #3 = Price Index for Year 3
• Blank #4 = Price Index for Year 4
Round to one decimal places
Blank # 1
Blank # 2
Blank # 3
Blank # 4

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