QUESTION 22 (4 marks) Using 2018 as the base year, you estimated that the ----------- Index for 2021 to be approximately 116.64.

A. Laspeyres Price

B. Paasches Quantity

C. Laspeyres Quantity

D. Paasches Price

QUESTION 23 (4 marks) Using 2018 as the base year, you estimated that the ----------- Index for 2021 to be 119.20.

A. Laspeyres Price

B. Paasches Quantity

C. Laspeyres Quantity

D. Paasches Price

QUESTION 24 (4 marks) Using 2018 as the base year, calculate the rate of inflation for the Laspeyres Price index and the Paasche Price Index.

A. The rate of inflation for the Laspeyres Price Index and the Paasche Price Index are 130.13% and 127.34% respectively.

B. The rate of inflation for the Laspeyres Price Index and the Paasche Price Index are 27.34% and 30.13% respectively.

C. The rate of inflation for the Laspeyres Price Index and the Paasche Price Index are 127.34% and 130.13% respectively.

D. The rate of inflation for the Laspeyres Price Index and the Paasche Price Index are 30.13% and 27.34% respectively.

QUESTION 25 (4 marks) Which of the following statements is patently incorrect?

A. Between 2018 and 2021, the prices of the 4 commodities rose faster than their levels of consumption.

B. In real terms, the price inflation of the 4 commodities between 2018 and 2021 was probably greater than 27.3% but less than 30.1%.

C. The weighted price changes are positively correlated with the weighted quantity changes during the 2018 -2021 period.

D. That the Laspeyres indices exceed the Paasche indices is indicative of the substitution effect at play between 2018 and 2021.

SECTION E Use the information provided below to answer questions 22 to 25 . A retail analyst seeking to unpack the impact of Covid-19 pandemic on small retail enterprises in Soweto obtained the following prices (in Rands) and quantities (in kg ) of four popular commodities - A, B, C and Dsold by 50 Soweto-based small retail enterprises during 2018 (pre-Covid-19) and in 2021, at the height of Covid-19. Table E below represents the aggregate retail data obtained from the 50 randomly surveyed Soweto-based small retail enterprises