Construct a Laspeyres index using the data, assuming that in 1999, 40% of the cost of a townhouse was labor.
Construction and Paving, a company whose primary business has been constructing homes in planned communities in the upper Midwest. The company has kept a record of the relative cost of labor and materials in its market areas for the last 11 years. These data are as follows:

Transcribed Image Text:

Average Material Cost ($) Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Hourly Wages (S) 30.10 30.50 31.70 32.50 34.00 35.50 35.10 35.05 34.90 33.80 34.20 66.500 68,900 70.600 70,900 71.200 71.700 72.500 73,700 73.400 74.100 74.000