To compute weighted aggregate price index using Laspeyres and Paasche method.
a. The subsequent table reports prices and usage quantities for two years in 1990 and 1992.
|
Item
|
1990
|
1992
|
1990
|
1992
|
|
A
|
1450
|
1500
|
9
|
11
|
|
B
|
540
|
650
|
4
|
6.5
|
(a) Compute a weighted aggregate price index for the two items using the Laspeyres method.
(b) Compute a weighted aggregate price index for the two items using the Paasche method