Consider the Following Table

question 12

Essay

Consider the following table.It provides the price and quantity data for three brands of a good.
a.Compute the weighted aggregate price index using the Laspeyres method with 2008 as the base year.
B)Compute the weighted aggregate price index using the Paasche method with 2008 as the base year.
C)Suppose the new price and quantity data was available for the base year of 2000 instead of 2008.Would this lead to a substantial difference between the two indices? Explain your answer.

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Definitions:

Output

The total amount of goods or services produced by a company, sector, or economy.

Energy Input

Refers to the energy required to produce goods and services, including electricity, fossil fuels, and renewable sources.

Per Capita Energy Use

The average amount of energy consumed per person in a given area or country.

Developed Countries

Nations with a high level of economic development, typically characterized by a high gross domestic product (GDP) per capita.