ECON 131

CLASSWORK #5
July 8, 2020

Name of Student: Humphrey Miles M. Tamon

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Data Set:

Year 1 Year 2 Year 3 Year 4

Commodity
P1 Q1 P2 Q2 P3 Q3 P4 Q4

A 2 10,000 2.2 11,000 2.45 12,000 2.7 13,000

B 1.25 15,000 1.5 17,250 1.6 19,800 1.7 20,500

C 2.5 8,500 2.85 8,500 3.3 8,500 3.85 8,500

D 1 25,000 1.25 26,000 1.6 28,000 2 31,000

E 10 2,500 12 3,000 15 3,100 19.5 3,200

Compute Paasche Price Index (PPI) for each year using Year 1 as base period.and present
summary of answers on the table below. Follow the two-decimal rule.(60 Pts.)

Table of Summary of Answers

Year 1 Year 2 Year 3 Year 4

Item
PnQn PoQn PnQn PoQn PnQn PoQn PnQn PoQn

A P 20,000 P 20,000 P 24,200 P 22,000 P 29,400 P 24,000 P 35,100 P 26,000

B 18,750 18,750 25,875 21,562.50 31,680 24,750 34,850 25,625

C 21,250 21,250 24,225 21,250 28,050 21,250 32,725 21,250

D 25,000 25,000 32,500 26,000 44,800 28,000 62,000 31,000

E 25,000 25,000 36,000 30,000 46,500 31,000 62,400 32,000

Totals P 110,000 P 110,000 P 142,800 P 120,812.50 P 180,430 P 129,000 P 227,075 P 135,875

PPI 100 118.20 139.87 167.12