By using the data in the table below, calculate for 2005 with 2002 as base year:
2002 2005
Product p0 q0 P1 q1 p1q0 p0q0 p1q1 p0q1
I 80 50 70 70
II 50 30 40 60
III 30 30 30 30
Total A B C D E F
Find
1. The price index for product II.
2. The price of product II increase / decrease from 2002 to 2005:
3. The value of A.
4. The value of C.
5. The value of D.
6. The value of E.
7. Laspeyres price index for 2005 with 2002 as base.
8. Paasche price index for 2005 with 2002 as base.
9. Fischer price index for 2005 with 2002 as base.
10. Unweighted price index for 2005 with 2002 as base.
11. The quantity index for product II.
12. The quantity of product II increase / decrease from 2002 to 2005 :
13. Laspeyres quantity index for 2005 with 2002 as base.
14. Paasche quantity index for 2005 with 2002 as base.
15. Unweighted quantity index for 2005 with 2002 as base.
16. Fischer quantity index for 2005 with 2002 as base.
1. Price index for product II:
Price index = (p1q1/p0q0) * 100
Price index = (40*60)/(50*30) *100
Price index = 80
2. Price of product II increased / decreased from 2002 to 2005:
Price of product II in 2005 - Price of product II in 2002
= 40 - 50
= -10
3. Value of A:
A = Σp1q1
A = 70*70 + 40*60 + 30*30
A = 4900 + 2400 + 900
A = 8200
4. Value of C:
C = Σp0q0
C = 50*30 + 30*30 + 30*30
C = 1500 + 900 + 900
C = 3300
5. Value of D:
D = A - C
D = 8200 - 3300
D = 4900
6. Value of E:
E = Σp1q0
E = 70*50 + 40*30 + 30*30
E = 3500 + 1200 + 900
E = 5600
7. Laspeyres price index for 2005 with 2002 as base:
Laspeyres price index = (Σp1q0/Σp0q0) * 100
Laspeyres price index = 5600/3300 * 100
Laspeyres price index = 169.70
8. Paasche price index for 2005 with 2002 as base:
Paasche price index = (Σp1q1/Σp0q1) * 100
Paasche price index = 8200/5600 * 100
Paasche price index = 146.43
9. Fischer price index for 2005 with 2002 as base:
Fischer price index = sqrt(Laspeyres price index * Paasche price index)
Fischer price index = sqrt(169.70 * 146.43)
Fischer price index = sqrt(24819.381)
Fischer price index = 157.55
10. Unweighted price index for 2005 with 2002 as base:
Unweighted price index = (Σp1q1/Σp0q1) * 100
Unweighted price index = 8200/5600 * 100
Unweighted price index = 146.43
11. Quantity index for product II:
Quantity index = (q1/q0) * 100
Quantity index = (60/30) * 100
Quantity index = 200
12. Quantity of product II increased / decreased from 2002 to 2005:
Quantity of product II in 2005 - Quantity of product II in 2002
= 60 - 30
= 30
13. Laspeyres quantity index for 2005 with 2002 as base:
Laspeyres quantity index = (Σp0q1/Σp0q0) * 100
Laspeyres quantity index = 5600/3300 * 100
Laspeyres quantity index = 169.70
14. Paasche quantity index for 2005 with 2002 as base:
Paasche quantity index = (Σp1q1/Σp1q0) * 100
Paasche quantity index = 8200/5600 * 100
Paasche quantity index = 146.43
15. Unweighted quantity index for 2005 with 2002 as base:
Unweighted quantity index = (Σp1q1/Σp0q1) * 100
Unweighted quantity index = 8200/5600 * 100
Unweighted quantity index = 146.43
16. Fischer quantity index for 2005 with 2002 as base:
Fischer quantity index = sqrt(Laspeyres quantity index * Paasche quantity index)
Fischer quantity index = sqrt(169.70 * 146.43)
Fischer quantity index = sqrt(24819.381)
Fischer quantity index = 157.55