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# Question 1 [27] In a restaurant, the proportion of people who order coffee with

sugar (2kg)

14

20

27

5

4

2

a. Compute the Laspeyres price and quantity indexes for 2018 using 2011 as the base year. [4]

b. Provide interpretations of the Laspeyres price and quantity indexes in (a) [2]

c. Compute the Laspeyres price and quantity indexes for 2018 using 2014 as the base year. [4]

d. Provide interpretations of the Laspeyres price and quantity indexes in (c) [2]

e. Compute the Paasche price and quantity indexes for 2018 using 2011 as the base year. [4]

f. Provide interpretations of the Paasche price and quantity indexes in (e) [2]

g. Compute the Paasche price and quantity indexes for 2018 using 2014 as the base year. [4]

h. Provide interpretations of the Paasche price and quantity indexes in (g) [2]

i. Comment on the results of Laspeyres comparison to Paasche indexes [1]