Question: answer all questions with explanation ( b ) Table 1 shows price per unit (RM) and quantity (units) for three types of commodity being consumed

answer all questions with explanation

answer all questions with explanation ( b ) Table 1 shows price

( b ) Table 1 shows price per unit (RM) and quantity (units) for three types of commodity being consumed in 2000 and 2020. Table 1 2000 2020 RM Units RM Units Fish 6.50 10 6.8 12 Potato 3 260 3.5 250 Milk 3.2 200 3.4 190 Compute a simple aggregate price index for 2020 using 2000 as the base year. (ii) Compute a base-weighted price index for 2020 using 2000 as the base year. ks) (111) Based on your answers in (b) (i) and (ii), which price index is preferable? Provide the reasoning to support your choice

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