A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period. Unit Price ($) Item 2011 Quantity (cases) 2011 2014 Beer 35,000 17.50 20.15 Wine 5,000 100.00 117.00 Soft drink 70,000 8.00 8.80 Compute the price relatives for this company's products. (Round your answers to two decimal places.)
A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period. Unit Price ($) Item 2011 Quantity (cases) 2011 2014 Beer 35,000 17.50 20.15 Wine 5,000 100.00 117.00 Soft drink 70,000 8.00 8.80 Compute the price relatives for this company's products. (Round your answers to two decimal places.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period.
| Unit Price ($) | |||
|---|---|---|---|
| Item | 2011 Quantity (cases) |
2011 | 2014 |
| Beer | 35,000 | 17.50 | 20.15 |
| Wine | 5,000 | 100.00 | 117.00 |
| Soft drink | 70,000 | 8.00 | 8.80 |
Compute the price relatives for this company's products. (Round your answers to two decimal places.)
| Item | Price Relative |
|---|---|
| Beer | |
| Wine | 117.00 |
| Soft drink | 110.00 |
Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.)
weighted average of price relatives index: ____ weighted aggregate price index :______
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Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.)
weighted average of price relatives index weighted aggregate price index
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