Question
A large manufacturer purchases an identical component from three independent suppliers that differ in unit price...
A large manufacturer purchases an identical component from three independent suppliers that differ in unit price and quantity supplied. The relevant data for 2012 and 2014 are given here.
| Unit Price ($) | |||
|---|---|---|---|
| Supplier | Quantity (2012) | 2012 | 2014 |
| A | 150 | 5.45 | 6.00 |
| B | 200 | 5.60 | 5.95 |
| C | 160 | 5.50 | 6.20 |
(a)
Compute the price relatives for each of the component suppliers separately. (Round your answers to the nearest integer.)
| Item | Price Relative |
|---|---|
| A | |
| B | |
| C |
Compute an unweighted aggregate price index for the component part in 2014. (Round your answer to the nearest integer.)
I2014 = _____
(c)
Compute a 2014 weighted aggregate price index for the component part. (Round your answer to the nearest integer.)
I2014 = _____
What is the interpretation of this index for the manufacturing firm? (Round your answer to the nearest integer.) ____
There was a ____ % increase in the price of the component part over the two-year period.
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