Suppose that Table 16.21 gives the yearly automobile operating expenses in a particular region of the United States for the years 1990, 2000, and 2011.a. Using 1990 as the base year, construct the Laspeyres index for these operating expenses. Describe how the operating expenses have changed over time.

b. Using 1990 as the base year, construct the Paasche index for the operating expenses.c. Another index, the value index, is given by the formula This index measures the changes in both the prices and quantities involved. Using 1990 as the base year, construct the value index for the operating expenses. Compare the three indices you have constructed.

Data from Table 16.21

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(Σp. 4/2po q0) × 100.