Question

The following information is on food items for the years 2000 and 2016.

	2000							2016
Item	Price			Quantity				Price			Quantity
Margarine (pound)	$	0.81			20			$	2.00			26
Shortening (pound)		0.84			1				1.88			8
Milk (1/2 gallon)		1.44			74				2.89			63
Potato chips		2.91			28				3.99			34

Compute Paasche’s index for 2016 using 2000 as the base period. (Round your answer to 2 decimal places)

Pasche's index=

Answer 1

2000 is base period

Item	Price(2000)p0	Quantity(2000) q0	Price(2016) p1	Quantity(2016) q1	p1q1	p0q1
Margarine	0.81	20	2.00	26	52	21.06
Shortening	0.84	1	1.88	8	15.04	6.72
Milk	1.44	74	2.89	63	182.07	90.72
PotatoChips	2.91	28	3.99	34	135.66	98.94
Total	-	-	-	-	384.77	217.44

Paasche’s index for 2016 using 2000 as the base period

Paasche's index;

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