Question: Consider the following price and quantity data for three products from 2008 to 2010. a. Compute the simple price index for each product, using 2008

Consider the following price and quantity data for three products from 2008 to 2010.

a. Compute the simple price index for each product, using 2008 as the base year.
b. Compare the relative price movements of the three products?

Product 1 $14.30 992 $14.90 980 $15.50 140 Product 2 $13.90 1110 $13.70 1220 $13.80 1290 Product 3 $18.10 800 $18.50 790 $17.90 810 Year Price Quantity Price Quantity Price Quantity 2008 2009 2010

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