The following table presents price and sales trends for consumer goods A, B, C, and D in years 1 and 3.

(a) Calculate the Laspeyres price and quantity indices for reporting year 3 using base year 1. Interpret your results.

(b) Calculate the Paasche price and quantity indices for reporting year 3 using base year 1. Interpret your results.

(c) Why is the inflation indicated by the Paasche index usually lower?

(d) Calculate the Fisher price and quantity indices for reporting year 3 using base year 1.

(e) Calculate and interpret the value index for reporting year 3 using base year 1.

(f) What is the per cent of annual price increase after calculating the Laspeyres price index?

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Good A B C D Price 1 6 27 14 35 Price 1 22 4 7 3 Price 3 8 28 13 42 Price 3 23 5 10 3