The following prices and quantities reflect the average weekly consumption
patterns of a certain family for the years 2001 and 2001.
Year 2001 Year 2002
Item
Price
(po
)
Sh.
Quantity
(qo
)
Price
(pt
)
Sh.
Quantity
(qt
)
Oranges (Kg) 15 2 25 1
Milk (Litres) 30 2 35 2
Bread (Loafs) 30 3 40 3
Eggs
(Dozens)
50 1 65 1
Required:
(i) Price relatives for each item. (5 marks)
(ii) Laspeyres price index (5 marks)
(ii) Paasche price index (5 marks)