Question: An index is to be constructed to show the changes in the price of selected hardware items sold from 2016 to 2020.The prices and quantities

An index is to be constructed to show the changes in the price of selected hardware items sold from 2016 to 2020.The prices and quantities consumed in the two periods are shown at the right. Using 2016 at the base period, compute: (Round to two decimal places)

a)The Laspeyres price index

b)The Paasche price index

An index is to be constructed to show the changes in the

Item 2016 2020 Price Quantity Price Quantity Hammer (each) $6.00 100 $9.00 120 Linseed oil (qt.) 2.00 1.000 5.00 1,100 Sandpaper(sheet) 0.10 800 0.40 900 12 hp motor(each) 30.00 10 65.00 15

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