The average prices and quantities of six hypothetical items offered by a government agency running a social
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Question:
The average prices and quantities of six hypothetical items offered by a government agency running a social protection program for a marginalized community are shown in the following table:
2021 | 2022 | |||
Items | Price (Kshs/Kg) | Quantity (Kg,000) | Price (Kshs/Kg) | Quantity (Kg,000) |
Maize Flour (A) | 10 | 5 | 12 | 6 |
Vegetables (B) | 15 | 8 | 18 | 10 |
Peas (C) | 10 | 6 | 10 | 10 |
Beans (D) | 20 | 10 | 22 | 15 |
Wheat (E) | 30 | 10 | 40 | 15 |
Millet (F) | 40 | 10 | 50 | 14 |
Tracey, the programs manager has hired you as a consultant to advice if she needs to ask the government for additional budgetary support. Using 2021 as base year, compute Kelly's and Fisher's Price index numbers for 2022 and in each case comment on the result.
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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