The table shown in the next column lists the spot price of natural gas (in dollars per Btu) between 1997 and 2015.
a. Using 1997 as the base period, calculate and plot the simple index for the spot price of natural gas from 1997 through 2015.
b. Use the simple index to interpret the trend in the price of natural gas.
c. Is the index you constructed in part a price or quantity index? Explain.
Year Spot Price
1997......................................2.49
1998......................................2.09
1999......................................2.27
2000......................................4.31
2001......................................3.96
2002......................................3.38
2003......................................5.47
2004......................................5.89
2005......................................8.69
2006......................................6.73
2007......................................6.97
2008......................................8.86
2009......................................3.94
2010......................................4.37
2011......................................4.00
2012......................................2.75
2013......................................3.73
2014......................................4.37
2015......................................2.62