In September 1997, a Brisbane Family's Weekly Diet Consisted of 6

question 20

Essay

In September 1997, a Brisbane family's weekly diet consisted of 6 kg of fish, 2 kg of beef and 2 kg of veal. One year later, because of the cost increases in these products, the family's diet has changed so that each week they consume 4 kg of chicken and 1 kg each of beef, veal, pork and fish. The prices are listed in the table below. $\quad\quad\quad\quad\text { September } 1997$$\quad\quad\quad\quad\quad\quad\text { September } 1998$
$\begin{array}{ccccc} \hline& \text { Price (\$) } & \text { Quantity (kg) } & \text { Price (\$) } & \text { Quantity (kg) } \\\text { Item } & p_{i 1997} & q_{i, 1997} & p_{i} 1998 & q_{i} 1998\\\hline\text { Beef } & 5.50 & 2 & 5.92 & 1 \\\text { Veal } & 7.48 & 2 & 8.06 & 1 \\\text { Pork } & 4.80 & 0 & 5.05 & 1\\\text { Chicken } & 3.62 & 0 & 3.45 & 4 \\\text { Fish } & 5.13 & 6 & 6.25 & 1\\\hline\end{array}$ Calculate the Paasche price index for 1998, using 1997 as the base.

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Definitions:

Return

Return refers to the gain or loss on an investment over a specific period, including income received and the change in value, usually expressed as a percentage of the investment’s initial cost.

Investment Horizon

Time horizon for purposes of investment decisions.

Liquidated

Converted assets into cash or paid off a debt, often referring to the process of closing a business and distributing its assets to claimants.

Execution Phase

The stage in a project or plan where the strategies and plans are put into action or carried out.