Question

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
A	1,500	1,600	7.50	7.45
B	2	1	650.00	1,500.00

(a)Compute price relatives for each item in 2011 using 2009 as the base period.

Item	Price Relative
A	?
B	?

(b) Compute an unweighted aggregate price index for the two items in 2011 using 2009 as the base period.

I₂₀₁₁ = ___________.

(c) Compute a weighted aggregate price index for the two items using the Laspeyres method using 2009 as the base period.

I₂₀₁₁ = ___________.

(d) Compute a weighted aggregate price index for the two items using the Paasche method using 2009 as the base period.

I₂₀₁₁ = ____________.

Answer 1