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Question 3 [14] Consider the following prices and quantities: Price (per kg)                             &nb

Question 3 [14] Consider the following prices and quantities:

Price (per kg)                            

            Quantities produced

          

2010

2012

2015

2010

2012

2015

Beans

3.95

3.89

4.13

675

717

436

Onions

61.50

62.20

59.70

117

115

115

Carrots

34.80

35.40

38.90

77

74

82

1. Compute and interpret the Paasche’s Quantity Index number for the year 2012 with 2010 as the base year.                                                                                                           (7)

2. Compute and interpret the Laspeyres Price Index number for the year 2015 with 2012 as the base year

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