Refer to Exercise 14.4. The next table gives the

Step 1 of 2

a)  The following table gives prices and quantities purchased for three products

Here quarter 4 is current period and quarter l is base period of all three products.

Laspeyres Index for the Quarter4 price of all three products using Quarter 1 as

the base period,

Here,  = quantity of  item in the base period.

             = Price of  item in current period

            = Price of  item in base period

                k = Number of items

In the given data, k = 3

Then,

Laspeyres Index for the Quarter 4 price of all three products using Quarter 1 as

the base period,