Question

A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period.

		Unit Price ($)
Item	2011 Quantity (cases)	2011	2014
Beer	40,000	19.50	20.15
Wine	5,000	100.00	116.00
Soft drink	70,000	8.00	8.80

Compute the price relatives for this company's products. (Round your answers to two decimal places.)

Item	Price Relative
Beer	103.33
Wine	116
Soft drink	110

Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.)

weighted average of price relatives index

weighted aggregate price index

Answer 1