An index of two store items for 2007 based on 2004 is to be constructed. The information for the prices and quantities for both years is given below. Use 2004 as the base period and 100 as the base value.
|
|
2004
|
2007
|
|
|
Item
|
Price ($)
|
Quantity
|
Price ($)
|
Quantity
|
|
|
|
|
Item 1
|
70
|
485
|
81
|
520
|
|
|
Item 2
|
33
|
1267
|
42
|
1377
|
|
For full marks your answer should be accurate to at least one decimal place.
Determine Laspeyres' price index.