YearQuantity/PriceGood 1Good 2Good 3Total valueQuantity108351990543417Price15398Quantity101597919955474b. Compute the 2000 Laspeyres price index base 100 = 1990.c. Compute the 2005 Paasche quantity index base 100 = 1995.e. Compute the 1990 Fisher price index base 100 = 2000.d. Compute the 2000 Paasche price index base 100 = 1990.Pricef. Compute the 2000 chained Fisher price index base 100 = 1990.1543Answer the following questions. Round your answers to the nearest first decimal.a. Compute the 1995 Laspeyres quantity index base 100 = 2000.18Quantity116587420006742Price Quantity244419132200561868948Price315021

Laspeyres considered the weight to be base year. And Paasche considered the base to be current…

Year Quantity/Price Good 1 Good 2 Good 3 Total value Quantity 108 35 1990 54 3417 Price 15 39 8 1995 Quantity 101 59 79 5474 b. Compute the 2000 Laspeyres price index base 100 = 1990. Price c. Compute the 2005 Paasche quantity index base 100 = 1995. 15 43 18 Quantity 116 58 Answer the following questions. Round your answers to the nearest first decimal. a. Compute the 1995 Laspeyres quantity index base 100 = 2000. 74 2000 6742 Price 24 44 19 Quantity Price 31 132 2005 61 86 8948 50 21

Year Quantity/Price Good 1 Good 2 Good 3 Total value Quantity 108 35 1990 54 3417 Price 15 39 8 1995 Quantity 101 59 79 5474 b. Compute the 2000 Laspeyres price index base 100 = 1990. Price c. Compute the 2005 Paasche quantity index base 100 = 1995. 15 43 18 Quantity 116 58 Answer the following questions. Round your answers to the nearest first decimal. a. Compute the 1995 Laspeyres quantity index base 100 = 2000. 74 2000 6742 Price 24 44 19 Quantity Price 31 132 2005 61 86 8948 50 21

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 5SCQ: How to Measure Changes in the Cost of Living introduced a number of different price indices. Which...

See similar textbooks

Similar questions

The following table reports prices and usage quantities for two items in 2009 and 2011. (Round your answers to the nearest integer.) Quantity Unit Price ($) Item 2009 2011 2009 2011 | 1,400 1,700 7.50 A 7.55 650.00 1,400.00 (a) Compute price relatives for each item in 2011 using 2009 as the base period. Item Price Relative A В (b) Compute an unweighted aggregate price index for the two items in 2011 using 2009 as the base period. 2011 (c) Compute a weighted aggregate price index for the two items using the Laspeyres method using 2009 as the base period. 2011
A price index does not measure transportation costs? True or False
In the table below there are three years of a basket of retail goods. From this information calculate the price index of 1985 if the base year in 1980? (Round your answer to the nearest whole number.) Good Amount 1980 1985 1990 $0.15 $0.25 $0.55 $1.50 $2.23 $2.95 $1.00 $1.25 $1.50 Tomatoes 25 5 Milk Eggs OO 141 152 O245 1
The table below details Student A's monthly purchases during 2019 and 2020. Answer the following questions writing out dollars and cents for monetary values e.g. $1.00, item weights to two decimal places e.g. 0.10, price index values as whole numbers without decimals, e.g. 110, and percentages to one decimal place e.g. 1.0%. Hotdogs Cans of Cola Chocolate bars Magazines Movies Prices ($) 2019 2.70 1.30 1.00 6.50 6.00 2020 2.80 1.25 1.00 7.50 5.75 Quantities (# consumed per month) 2020 With 2019 as the base year this index has changed by 2019 2 16 7 3 2 1 18 7 a. The value of Student A's 2019 shopping basket using 2019 prices is $ The item weights associated with this shopping basket are for magazines, and for movies. b. The value of Student A's 2019 shopping basket using 2020 prices is $ If 2019 is used as the base year, the 2020 value of Student A's price index is 2 3 for hotdogs, for cola, for chocolate bars, and the 2019 value of this index is then % between 2019 and 2020.
d. Compute the 2000 Paasche price index base 100 = 1990. e. Compute the 1990 Fisher price index base 100 = 2000. f. Compute the 2000 chained Fisher price index base 100 = 1990. Po
Name several forms of indexing in the private and public sector.
How to Measure Changes in the Cost of Living introduced a number of different price indices. Which price index would be best to use to adjust your paycheck for inflation?
How do you convert a series of nominal economic data over time to real terms?
30. From the information given below find Laspeyres' and Paasche's price index number for year 11 with year 1 as base: 1 Commodity (in kg.) Commodity Price/Unit (i Year 1 2 Total Value (in $ 3 Year 11 4 Year 1 Year 11 A 24.09 12 184.5 6 В 20.66 10 122.04 7 18.6 16 16 295.56 D 9.45 10 25 189 8 9 10 11 12 13 14 15 16 17 18
Examine the following information as reported for the foods below in the years 2010 and 2019. 2010 2019 Item Price (S) Quantity Price (S) Quantity Eggs (one dozen) $2.75 27 $3.37 40 Chicken (500 g) $3.20 11 $3.57 7 Bread (675 g) $2.28 18 $2.83 23 a) Compute a simple price index for each of the items, using the year 2010 as the base year. Enter them in the same order as above: Eggs, Chicken, Bread. Round answers to 1 decimal. b) Compute a simple aggregate price index. Use 2010 as the base period. Round to one decimal place. c) Compute the Laspeyres price index for 2019 using 2010 as the base year. Round to one decimal place. d) Determine a value index for 2019, using 2010 as the base year. Round to one decimal place.
Problem 3: Again, consider the country of Opalia that produces two goods: footballs and basketballs. Below is a table showing prices and quantities of common consumer purchases for the past three years: Price of Footballs Price of Basketballs Qd Footballs Qd Basketballs Year Year 1 10 12 33 4 Year 2 12 4 15 Year 3 18 14 a) Compute the CPI index (using year 1 as the base). b) Compute the inflation rate. c) Compare the answer to part b) and the answer you found for problem 1, part d)? What is the origin of the difference?
Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure all questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumers