The composite price indexes for electrical goods (e.g. kettles, toasters, refrigerators, stoves, microwave ovens, blenders) for the period 2004 to 2010 are shown in the following table:
|
|
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
|
Composite price index (electrical goods)
|
88
|
96
|
100
|
109
|
114
|
112
|
115
|
Give all calculations correct to one decimal place.
(a) Reset the base period index for electrical goods from 2006 to 2009. Interpret the revised index number series.
(b) Calculate the link relatives for electrical goods and interpret.