I Understanding Price Indexes Suppose the economy of Strandasville produces only four goods: CDs, pizza, desk chairs, and sweaters. The following tables show the dollar value of output for three different years.
Number Price Number Price per Year of CDs per CD of Pizzas Pizza 1 1,000 $5 8,000 $6.60 2 1,000 $6 8,000 $6.60 3 4,000 $7 10,000 $6.80 Number of Price per Number Price per Year Desk Chairs Chair of Sweaters Sweater 1 3,000 $20 5,000 $20 2 3,000 $25 5,000 $18 3 3,500 $25 4,900 $15