Question 7

The following data represents the prices in Kshs. and quantities in Kgs of commodities bought in two different years 1990 and 1995 respectively.

Commodities 1990 1995

Price KShs. Quantity Kg. Price KShs. Quantity Kg.

Bread 4 8,000 5 10,000

Cheese 40 1,000 70 5,000

Sugar 10 7,000 18 10,000

Maize flour 10 10,000 13 12,000

Salt 3 3,000 4 6,000

Required:

Compute the Laspeyre’s and Paasche’s Price index of the data above taking 1990 as the base year and comment on your findings. (Show all your workings in the scripts) (30 Marks)

asked by guest
on Nov 28, 2024 at 12:24 am



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