Question

I just need help with (c). I posted it earlier and got 188 as the response and my assignment is showing this as incorrect. Please help if you can.

The following table reports prices and usage quantities for two items in 2009 and 2011. (Round your answers to the nearest integer.)

	Quantity		Unit Price ($)
Item	2009	2011	2009	2011
A	1,500	1,600	8.50	6.75
B	4	2	630.00	1,500.00

(a)

Compute price relatives for each item in 2011 using 2009 as the base period.

Item	Price Relative
A	79
B	238

(b) Compute an unweighted aggregate price index for the two items in 2011 using 2009 as the base period.

I₂₀₁₁ = 236

(c) Compute a weighted aggregate price index for the two items using the Laspeyres method using 2009 as the base period.

I₂₀₁₁ =

(d) Compute a weighted aggregate price index for the two items using the Paasche method using 2009 as the base period.

I₂₀₁₁ = 93

Answer 1

Solution we have to calculate weighted aggdegate peice index fore the two item wsing the Laspeydes method using 2009 as the base peeled. Toe mura: Laspeyte's price index numbee is given by, Pop (La) = EP,90 ΣΡ 9ο Item obseovation table Quantity unit peice ($) 2009 2011 2009 2011 9. 91 Po Prlo Poxto 15oo 16oo 8.50 10125 12750 4 2 630.00 1 500.00 6000 2520 EP 9.-16125 EP. 9-15270 P. 6.75 А B i I2011 = Poilla)= E Pilo I Po90 16125 x 100 15270 = 105.599 I2011 = Poilla)= 106 , Weighted aggregate price index fore the two iteme wsing the Lospeydes method wing 2009 w the base period is I2011 = 106