Data for Selected Vegetables Purchased at Wholesale Prices for 1995

question 5

Multiple Choice

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Laspeyres' price index?

• A) 98.4
• B) 107.0
• C) 108.0
• D) 117.5
• E) 115.6

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Definitions:

Location Subsidies

Financial incentives provided by governments to encourage businesses to set up or expand in particular areas, often to stimulate economic growth.

Public Good

A good or service offered to society's members at no cost, sponsored by either a private entity or the government with no intent of making a profit.

Marginal Cost

Marginal cost is the change in total production cost that comes from making or producing one additional unit of a good or service.

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be used by many people without depleting the resource or preventing others from using it.