FE82023/

" FEB 2022

i
3 JULY 2021

FE8 2021

5)JULY 2020
FE82023

Po Go PtQ t
a) simple average relative price index for 2020

Price index
28 100
x Material
X -10 x100 127.27 =

D 5.5

142.86
-500
y x 100
=

403.46
=

Z 133.33
-x
3
100 =

134.49
=
403.46

The average price index for 2020 was 134.49.

The number of sold increased by 34.49% over

a
period of 2019 to 2020.

b) (aspeyres quantity index for the

year 2021

20+P
=
x108 Materials ①+ Po QuPo
↳Qu Po X 1760 2200

2345 2100

4480x100
= I 375 450
4750 44480 44750

94.32
=

Quantity decreased by 5.68% for the year 2021

FE82022
Po Pt At
Qu
a) value of X value of y

1
3
=
x 100
114 =

x 100
227

108.37%
=

y 258.78
=

X 259
109
=

b) Simple Aggregate Price Index

*P x100 272 259 246x10

+ +
+

251 22F 207

+ +

777
=

108
X
685
113.43
=

3) Laspeyres Price Index in 2020

EP+ Qu x 108 Types of gold P QO

+

PoQo
3 Po Qo 999 4352 4016
950 5698 4994
16938x108
=
916 6888 5796
14806 216938 14806
=
114.40

The price for three types of gold purity increased by

14.40% for the year 2020.
d) Paasche Quantity Index in 2020

[Q+ Pt
=>
100
X types of gold Q + P+ Qo Pt
↳ Qu Pt
purity
999 5712 4352
21056x100
=

950 6734 5698

16938 916 8610 6888
<21056 -16938
124.31
=

The quantity for three

types of gold purity increased by
24.31% for the year 2020.
 JULY 2021

Po QU Pt Qt
 9) main components of index number
-

price index
-

quantity index

b) i) 2010

ii) The producer price index for mining decreased by

14% for the year 2020.

The producer price index for manufacturing increased by

9.8% for the year 2020.

c) i) The average relative price index for 2020

)
3x
item
-
price index
=

A I x100 = 120
2.5
8 - 66.67
X 100
=

-
340.52 4.5
3 153.85
*x100
C
=

113.51
=

5340,52

The average price index for 2020 was 113.51.

The number of price increased by 12.51% over a

time period of 2019 to 2020.

ii) Laspeyres quantity index for 2020.

3Q+Po
= x100 item Q + Po QoPo
& Qu Po E 508.25 434
⑨ 946.8 722.7
2676.4
=

X 100
C 1221.35 963.95
2120.25 42676.4 22120.65

126.23
=

The quantity index of vegetables increased by

26.23% for the year 2020.

iii) Paasche price index for 2020

3P+ Q
=

x100 + item -
P Q+
+

2 Po Qt E 609.9 508.25
8 631.2 946.8
3120.1
= C 1879 1221.35
X 100
2676.4 33120.1 32676.4

116.58
=

The
price index of vegetable increased by 16.58%
for the year 2020.
FE82021
Po QO Pt Qt

140
9) i) Unweighted aggregate, value 2

>! 80x100
=

x100 187.5 =

187.5)2 180) 600x100

+
=

230 120 250 187.52 33750 60000

=

X 100
+ +
+
=

100 80 187.52 60000 33750

=

2 + + -

187.5
5
2
=

2 =

140

ii) Average price index

(( 100)
= x #
hand sanitizer
price index
=5 x100 115.38
=

D 6.5
Vitamin C 1.5 x 100
105.19
=

387.24
=
38.5
3 face mask 166.67
-8x100
-

=
129.08 3387.24

The average price index for 2020 was 129.08.

The number of price increased by 29.08% over a

period time 2019 to 2020.

iii) Laspagues price index for 2020

3P+ Qo item P QO PoQO

x 100
+

2 Po Qu hand san; 1050 910

Vitamin C 4058 3850
9100x100
= face mask 4000 2400
7160 39100 27160

127. 10
=

The price index by 2As healthcare company

increased by 27,10% for the year 2020.

b) Laspeyres

advantage disadvantage
-

needs
only the
-

tends to over-estimate price

base period quantities increases in a period

Paasche

advantage disadvantage
-

uses current quantities

-

tends to under-estimate
as weights, which are price increases in a

always up to date period of rising prices.

JULY 2020