HW chap 6-8

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Unformatted text preview: rices are: (1.10)7 + (1.50)18 = $34.70. 7 ounces of sunscreen and 18 gallons of lemonade is the base bundle, where the Laspeyres index equals 1.000. http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 2/3 1/22/2014 Assignme nt Pr int Vie w The cost of July's bundle in June is: (1.00)7 + (1.20)18 = $28.60. This is a difference (from June to July) of 34.70 – 28.60 = $6.10, or 6.10 / 28.60 = 21.329 percent, so the Laspeyres index for June is 0.787. The cost of July's bundle in August is: (1.50)7 + (2.00)18 = $46.50. This is a difference (from July to August) of 46.50 – 34.70 = $11.80, or 11.80 / 34.70 = 34.006 percent, so the Laspeyres index for August is 1.340. Expenditu...
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This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.

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