The following table indicates the unit prices (in Rands) and quantities of three intermediate products consumed by a car factory in Silverton, Pretoria, for the months of March and May of 2024. Product MARCH 2024 MAY 2024 Unit Price (p0) Quantity (q0)) Unit Price (p1) Quantity (q1) Door handles R333.70 4020 R335.70 4235 Wheels R2017.00 9120 R2029.40 8910 Mirror Switches R61.50 7150 R62.70 7100 Q.2.1 Using March 2024 as the base period, compute the quantity relatives in May 2024 for door handles and wheels. Interpret your answers. Q.2.2 Using March 2024 as the base period, compute the Paasche price index for all of the products for May 2024. Interpret your answer. Q.2.3 Using March 2024 as the base period, compute the Laspeyres price index for all of the products for May 2024. Interpret your answer.
The following table indicates the unit prices (in Rands) and quantities of three intermediate
products consumed by a car factory in Silverton, Pretoria, for the months of March and May of
2024.
Product
MARCH 2024 MAY 2024
Unit Price (p0) Quantity (q0)) Unit Price (p1) Quantity (q1)
Door handles R333.70 4020 R335.70 4235
Wheels R2017.00 9120 R2029.40 8910
Mirror Switches R61.50 7150 R62.70 7100
Q.2.1 Using March 2024 as the base period, compute the quantity relatives in May
2024 for door handles and wheels. Interpret your answers.
Q.2.2 Using March 2024 as the base period, compute the Paasche price index for all of
the products for May 2024. Interpret your answer.
Q.2.3 Using March 2024 as the base period, compute the Laspeyres price index for all
of the products for May 2024. Interpret your answer.
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