Question
The following table indicates the unit prices (in rands) and quantities of three goods purchased every month by a small restaurant for the years 2023
The following table indicates the unit prices (in rands) and quantities of three goods purchased every month by a small restaurant for the years 2023 and 2024.
GOOD 2023 2024
Unit Price (p0) Quantity (q0)) Unit Price (p1) Quantity (q1)
Milk R12.60 2555 R12.85 2705
Eggs R11.00 114 R14.00 107
Flour R65.00 350 R68.50 400
Q.3.1 Using 2023 as the base year, compute the price relative in 2024 for milk and eggs. Interpret the answers.
Q.3.2 Using 2023 as the base year, compute the Laspeyres price index for all of the goods for 2024. Interpret the answer.
Q.3.3 Using 2023 as the base year, compute the Paasche price index for all of the goods for 2024. Interpret the answer.
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Principles Of Macroeconomics
Authors: N Gregory Mankiw
8th Edition
1305971507, 9781305971509
