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    Calculating simple and aggregate price index

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    Below is information on food items for the years 2000 and 2004. Use this table for problems 27 & 28. Show All Work
    2000 2004
    Item Price Quantity Price Quantity
    Margarine (pound) $0.81 18 $0.89 27
    Shortening (pound) $0.84 5 $0.94 9
    Milk (1/2 gallon) $1.44 70 $1.43 65
    Potato chips $2.91 27 $3.07 33

    27. Compute a simple price index for each of the four items. Use 2000 as the base period.

    28. Compute a simple aggregate price index. Use 2000 as the base period.

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    https://brainmass.com/business/profitability-index/calculating-simple-aggregate-price-index-309516

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    27. Compute a simple price index for each of the four items. Use 2000 as the base period.

    Simple Price Index ...

    Solution Summary

    Solution describes the steps to calculate simple and aggregate price index in the given case.

    $2.19

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