SCENARIO 16-17
Given Below Are the Prices of a Basket

question 228

Short Answer

SCENARIO 16-17
Given below are the prices of a basket of four food items from 2008 to 2012. $$\begin{array} { c r r r r } \hline \text { Year } & \text { Wheat(\$/Bushel) } & \text { Corn(\$/Bushel) } & \text { Soybeans(\$/Bushel) } & \text { Milk(\$/hundredweight) } \\\hline 2008 & 4.25 & 3.71 & 7.41 & 15.03 \\2009 & 3.43 & 2.7 & 7.55 & 13.63 \\2010 & 2.63 & 2.3 & 6.05 & 15.18 \\2011 & 2.11 & 1.97 & 4.68 & 14.72 \\2012 & 2.16 & 1.9 & 4.81 & 12.32\end{array}$$
-Referring to Scenario 16-17, what is the Paasche price index for the basket of four food items
in 2012 that consisted of 40 bushels of wheat, 50 bushels of corn, 35 bushels of soybeans and
60 hundredweight of milk in 2012 using 2008 as the base year?

---

Definitions:

Isopropyl Alcohol

A secondary alcohol commonly used as a solvent and disinfectant, known for its ability to evaporate quickly.

Acetone

A volatile, colorless solvent widely used in organic chemistry and as a nail polish remover, known for its ability to dissolve many plastics and synthetic fibers.

Reactive Intermediate

Transitory species that are formed during a chemical reaction and participate in further reaction steps until the final products are produced.

Oxidation

The process where a substance undergoes an increase in its oxidation state, often associated with the addition of oxygen or removal of hydrogen.