TABLE 16-14
Given Below Are the Average Prices for Three

question 176

Short Answer

TABLE 16-14
Given below are the average prices for three types of energy products in the United States from 1992 to 1995.
$$\begin{array} { c c c c } \text { Year } & \text { Electricity } & \text { N atural Gas } & \text { Fuel Oil } \\1992 & 43.205 & 25.893 & 0.892 \\1993 & 16.959 & 28.749 & 0.969 \\1994 & 47.202 & 28.933 & 1.034 \\1995 & 48.874 & 29.872 & 0.913 \\1996 & 48.693 & 28.384 & 0.983\end{array}$$
-Referring to Table 16-14, what is the Laspeyres price index for the group of three energy items in 1996 for a family that consumed 15 units of electricity, 24 units of natural gas and 200 units of fuel oil in 1992 using 1992 as the base year?

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Definitions:

Financial Theory

A branch of economics that aims to understand and explain how financial markets operate, the structure of capital markets, and the pricing of financial instruments.

Economics

The social science that studies how people use scarce resources to produce valuable commodities and distribute them among different people.

Mathematics

Mathematics is the abstract study of numbers, quantity, structure, space, and change, used as a tool in a wide range of disciplines.

Stockholders

Individuals or entities that own shares in a corporation, giving them a stake in the company's performance and potential profits.