Exercise 31) The table below gives the price and consumption (usage/sales) for two products x andy for four years. Using year 2000 as the base year calculate for each year, theb) Laspeyers price index, andQuantity x, q,a) Basic expenditure indexYearc) Paasche price indexQuantity y, q,Price ofPrice of y, Pyх, р,2000R4R332001R56.R46.R5R72002R6442003R6442) Below is a table of items consumed in a hotel for three years together with the averageprice of each item for each of the three years. Using 2003 as the base year, calculate foreach subsequent year, thea) Basic expenditure index b) Laspeyers price index, and c) Paasche price indexd) Laspeyers volume index e) Paasche volume indexItem200320042005Quantity | Price (R)3.95QuantityPrice (R)QuantityPrice (R)Milk292031004.1032104.10Bread21903.6022303.8022004.00Eggs (each)0.607.2014.0016425175630.60178900.65Butter7306807.706508.30Cheese1135108614.9115016.00Margerine15746.8017007.2017207.50

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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 R4 6. 2002 R6 R5 4 2003 R6 R7 4 644

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 R4 6. 2002 R6 R5 4 2003 R6 R7 4 644

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.8P

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Question

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
1574
6.80
1700
7.20
1720
7.50

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DAC3345 2020 2020 2022 2022 ITEM PRICE (R) QUANTITY PRICE (R) QUANTITY X 100 200 150 250 Y 40 60 70 80 Z 20 90 40 110 Using 2020 as the base year, the Laspeyre's price index for this basket of items is: A 158.7% B. 156.2% C 152.8% D. 149.1%