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The following information has been obtained for sales of two products for a three year period:
………………………………… Price …………………… Quantity ……….
………………………Product A .. Product B .. Product A .. Product B ..
2000 (base year) …… 100 ……….. 150 …………. 3 …………… 4 …..
2001 …………………. 125 ……….. 140 …………. 2 …………… 3 …..
2002 …………………. 130 ……….. 135 …………. 2 …………… 4 …..What is the Paasche quantity index for 2002?
A 0·86
B 0·89
C 1·19
D 1·20The answer I’ve got uses sum of p_3q_3 / sum of p_3q_1 to give:
[(130 × 2) + (135 × 4)] / [(130 × 3) + (135 × 4)] = 800/930 = 0.86
But I thought we always use current year (2002) quantities in Paasche, so:
sum of p_3q_3 / sum of p_1q_3?
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