You are given the following information on selected food items: The Laspeyres price index when the current period is 2013 and the base year is 2006 is ________.
A)142.39
B)135.31
C)70.23
D)73.73

Question

You are given the following information on selected food items:  The Laspeyres price index when the current period is 2013 and the base year is 2006 is ________.
A)142.39 
B)135.31 
C)70.23 
D)73.73

Quizplus · Accepted Answer

To calculate the Laspeyres price index, we need to use the following formula:

Laspeyres price index = (Current period prices x Base period quantities) / (Base period prices x Base period quantities) x 100

Using the information given, we can fill in the formula as follows:

(Current period prices) = (11ea71e6_5bb1_b12b_91e5_97798f05a614_TB2636_00) = 135.31
(Base period quantities) = 1
(Base period prices) = 1 (since it is the base year, the price is normalized to 1)

Therefore, the Laspeyres price index = (11ea71e6_5bb1_b12b_91e5_97798f05a614_TB2636_00) / 1 x 100 = 135.31.

Thus, the correct answer is choice B (135.31).

You Are Given the Following Information on Selected Food Items