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 60 50 70 40
II 50 20 40 40
III 30 30 30 40
Total A B C D E F
Find Laspeyres quantity index for 2005 with 2002 as base.
116.32
114.29
110.78
100
98.50
To calculate the Laspeyres quantity index for 2005 with 2002 as the base year, use the formula:
Laspeyres Quantity Index = (Σ(p0q1)/Σ(p0q0)) x 100
First, calculate the values for each product:
For Product I:
p0q1 = 60 * 40 = 2400
p0q0 = 60 * 50 = 3000
For Product II:
p0q1 = 50 * 40 = 2000
p0q0 = 50 * 20 = 1000
For Product III:
p0q1 = 30 * 40 = 1200
p0q0 = 30 * 30 = 900
Now, calculate the total values:
Σ(p0q1) = 2400 + 2000 + 1200 = 5600
Σ(p0q0) = 3000 + 1000 + 900 = 4900
Finally, plug in the values into the formula:
Laspeyres Quantity Index = (Σ(p0q1)/Σ(p0q0)) x 100
= (5600/4900) x 100
= 114.29
Therefore, the Laspeyres quantity index for 2005 with 2002 as the base year is 114.29.