Use the week 10 data in question 46 to show that the ratio of the Laspeyres price index to the Laspeyres quantity index is equal to the ratio of the Paasche price index to the Paasche quantity index.

Question 46

Use the data in question 45, and use week 1 as the base, to compute:

(a) The Laspeyres aggregative quantity index

(b) The Paasche aggregative quantity index

(c) Fisher’s ideal quantity index

Question 45

The following table shows the price per pound and the volume (in thousands of pounds) for chicken and beef at Eat More Grocery Store.

Use week 1 as the base to:

(a) Compute the Laspeyres aggregative price index.

(b) Compute the Paasche aggregative price index.

(c) Compute Fisher’s ideal price index.

Transcribed Image Text:

Week 1 2 3 4 5 6 7 8 9 10 Beef Price ($) 1.25 1.35 1.19 1.45 1.29 1.39 1.45 1.09 1.39 1.49 Volume 15 14 17 18 19 22 15 25 19 15 Chicken Price ($) 1.86 1.99 2.10 2.05 1.79 2.09 2.29 2.39 2.45 2.89 Volume 11 12 11 11 15 18 15 14 13 9