Using the data from question 26, compute the Laspeyres price index.

Question 26

On the Island of Crusoe, there are only two goods: coconuts and fish. Suppose you have the following information on the prices and quantities of fish and coconuts.

Using 1988 as the base year, compute the Paasche price index.

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Year 1987 1988 1989 1990 Fish Q 100 110 99 121 P $3.00 2.90 3.12 3.45 Coconuts Q 75 80 79 88 P $1.00 1.02 1.05 1.15