Data for Selected Fruits Purchased at Wholesale Prices for 2005

question 77

Multiple Choice

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown below. What is your interpretation of Laspeyres' price index?

• A) Value rose 9.4%
• B) Value rose 79.1%
• C) Value rose 12.7%
• D) Value rose 12.0%

---

Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers where no single party can dictate the market price of goods or services.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often a measure of producer wellbeing.

Production Costs

The total expenses incurred in the process of creating goods or services, comprising direct materials, direct labor, and overheads.