6 / 10125%1) 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, qxa) Basic expenditure indexPrice ofc) Paasche price indexQuantity y, q,YearPrice of y, Pyx, Px2000R4R332001R56R46.2002R64R542003R64R742) 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 index

a) Base Year = 2000 The simple expenditure index formula, Index=∑Current year price ×Current year…

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 a) Basic expenditure index b) Laspeyers price index, and c) Paasche price index Price of y, Py Year Price of Quantity x, qx Quantity y, qy x, Px 2000 R4 5 R3 3 2001 R5 6 R4 2002 R6 4 R5 4 2003 R6 4 R7 4

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 a) Basic expenditure index b) Laspeyers price index, and c) Paasche price index Price of y, Py Year Price of Quantity x, qx Quantity y, qy x, Px 2000 R4 5 R3 3 2001 R5 6 R4 2002 R6 4 R5 4 2003 R6 4 R7 4

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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