The data in the table below shows the usage of a basket of three food items...

  

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The data in the table below shows the usage of a basket of three food items in a household for April 2020 and May 2020. April 2020 May 2020 Item o Unit Price Qиantity Unit Price Qиаntity (NS) (N$) Cooking oil (750 ml) 16.00 16.50 3 Rice (1 kg) 25.00 3 25.40 4 Meat (1 kg) 50.00 50.25 Required: a) Calculate and interpret the Laspeyres weighted aggregate price index for the basket of food items for May 2020. b) Calculate and interpret the Paasche weighted aggregate price index for the basket of food items for May 2020. c) Which of the food item has had the highest relative price increase between April and May 2020? Show calculations. The data in the table below shows the usage of a basket of three food items in a household for April 2020 and May 2020. April 2020 May 2020 Item o Unit Price Qиantity Unit Price Qиаntity (NS) (N$) Cooking oil (750 ml) 16.00 16.50 3 Rice (1 kg) 25.00 3 25.40 4 Meat (1 kg) 50.00 50.25 Required: a) Calculate and interpret the Laspeyres weighted aggregate price index for the basket of food items for May 2020. b) Calculate and interpret the Paasche weighted aggregate price index for the basket of food items for May 2020. c) Which of the food item has had the highest relative price increase between April and May 2020? Show calculations.

Answer rating: 100% (QA)

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