Question

Consider the following price and quantity data for three products from 2008 to 2010. Year 2008 Product 1 $12.50 980 $13.10 970 $14.80 120 Price Quantity Price Quantity Price Quantity Product 2 $14.60 1, 120 $11.90 1,230 $17.30 1,290 Product 3 $12.50 780 $13.70 750 $11.30 780 2009 2010 Click here for the Excel Data File a. Compute the simple price index for each product, using 2008 as the base year. (Round your an ces Simple Price Index Product 1 Product 2 Product 3 Year 2008 2009 2010 b. Compare the relative price movements of the three products. (Input all values as positive values. R decimal places.) < Prex 6 of 7 !!! Next > 29 MacBook Air o FI F2 80 13 OG # $ $ %

Answer 1

Consider the following following price and quantity data for these products frau 2008 to 2010. Peoduct 2 Peoduct 3 Peoduct! 12.50 780 12.50 Year Price 2008 Quantity 14.60 11 20 980 11.70 1230 13.70 T50 2009 17.30 12.90 11.30 780 2010 Perce 13.10 970 Quantity Price 14.80 Quantity current year is the base year =P Po as Pi taken is taken as to Peice of and price number Aloo Sumple undex is index as shaon below. Simple peice Peoduct 3 Product2 Product Year 14.60 14.50 5*100= 100.80 12.50 1100=100 12.50 12.50 -X100 - 100 2009 12010 13.70 12.50 11.70 XIOO 14.60 = 109.6 80.14 13.10 X100 12.30 2009 104.8 11:30 14.80 = 12-50 100 (oo 90.4 17.30 2000 14.60 2 118.49 20010 12.50 = 118.4