Fresh fruit price and quantity data for the years 1988 and 2007 follow (Census Bureau website, March 19, 2009). Quantity data reflect per capita consumption in pounds and prices are per pound.

a. Compute a price relative for each product.
b. Compute a weighted aggregate price index for fruit products. Comment on the change in fruit prices over the 19-year period.

Transcribed Image Text:

1988 per Caplta Consumption (pounds) 24.3 19.9 13.9 3.2 1988 Price S/pound) 41 2007 Price $/pound) 53 1.12 91 1.27 Fruit Bananas Apples Oranges Pears 56 64