Question
A large manufacturer purchases an identical component from three independent suppliers that differ in unit price and quantity supplied. The relevant data for 2016 and
A large manufacturer purchases an identical component from three independent suppliers that differ in unit price and quantity supplied. The relevant data for 2016 and 2022 are given here.
Unit Price ($) | |||
---|---|---|---|
Supplier | Quantity (2016) | 2016 | 2022 |
A | 150 | 5.95 | 6.50 |
B | 200 | 5.60 | 5.95 |
C | 120 | 5.50 | 6.30 |
(a)Compute the price relatives for each of the component suppliers separately. (Round your answers to the nearest integer.)
Item | Price Relative |
---|---|
A | |
B | |
C |
Compare the price increases by the suppliers over the six-year period
. ---Select--(A) All (b) some (c) No prices increased, with the greatest price relative being from supplier ---
Select---( A)( B)(c) and the smallest price relative being from the supplier ---Select--- A B C
.(b)Compute an unweighted aggregate price index for the component part in 2022. (Round your answer to the nearest integer.)I2022 =
(c)Compute a 2022 weighted aggregate price index for the component part. (Round your answer to the nearest integer.)I2022 =
What is the interpretation of this index for the manufacturing firm? (Give your answer as a percent. Round your answer to the nearest integer.)
There was a---------- % increase in the price of the component part over the six-year period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started