Annual US craft beer production. While overall beer production in the United States has declined the past decade, craft beer production has increased dramatically. The table below lists the US craft beer production (in millions of barrels) for the period 2004–2019.

a. Use 2004 as the base period to compute the simple index for this time series. Interpret the value for 2019.

b. Refer to part

a. Is this an example of a quantity index or a price index?

c. Recompute the simple index using 2010 as the base period. Plot the two indexes on the same graph. What pattern do you observe? Year Craft Beer Production 2004 5.83 2005 6.29 2006 7.10 2007 7.98 2008 8.49 2009 9.07 2010 10.13 2011 11.46 2012 13.24 2013 15.51 2014 22.16 2015 24.52 2016 24.30 201725.002018 25.50 2019 26.30 Source: Data from Brewer’s Association, Boulder, CO, 2020.