10.3 The following data show energy prices and consumption in 1995–1999 (analogous to the data in the chapter for the years 2002–2006). Prices Coal (£/tonne) Petroleum (£/tonne) Electricity (£/MWh) Gas (£/therm) 1995 37.27 92.93 40.07 0.677 1996 35.41 98.33 39.16 0.464 1997 34.42 90.86 36.87 0.509 1998 35.16 87.23 36.67 0.560 1999 34.77 104.93 36.23 0.546 Quantities Coal (m tonnes) Petroleum (m tonnes) Electricity (m MWh) Gas (m therms) 1995 2.91 6.37 102.88 4938 1996 2.22 6.21 105.45 5406 1997 2.14 5.64 107.31 5565 1998 1.81 5.37 107.97 5639 1999 2.04 5.33 110.98 6039

(a) Construct a Laspeyres price index using 1995 as the base year.

(b) Construct a Paasche price index. Compare this result with the Laspeyres index. Do they differ significantly?

(c) Construct Laspeyres and Paasche quantity indices. Check that they satisfy the conditions that En = PL × QP, etc.