SCENARIO 16-16
Given Below Are the Average Prices for Three

question 88

Short Answer

SCENARIO 16-16
Given below are the average prices for three types of energy products for five consecutive years. $$\begin{array} { r r r r } \text { Year } & \text { Electricity } & \text { Natural Gas } & \text { Fuel Oil } \\1 & 43.205 & 25.893 & 0.892 \\2 & 16.959 & 28.749 & 0.969 \\3 & 47.202 & 28.933 & 1.034 \\4 & 48.874 & 29.872 & 0.913 \\5 & 48.693 & 28.384 & 0.983\end{array}$$
-Referring to Scenario 16-16, what is the Laspeyres price index for the group of three energy
items in year 3 for a family that consumed 15 units of electricity, 24 units of natural gas and
200 units of fuel oil in year 1 using year 1 as the base year?

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Definitions:

British Imports

Goods and products brought into a country from the United Kingdom, which can include a wide range of items from tea to machinery.

Daughters Of Liberty

A group of women who participated in the American Revolutionary War efforts by boycotting British goods and producing homemade items to aid the patriot cause.

Spun

In a general context, it means to twist together strands to make yarn or thread, but can also refer metaphorically to presenting information in a particular way to influence perception.

Wove

A term used to describe the texture or pattern of material that has been interlaced to form a cohesive fabric, often through weaving.