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    Calculating Price Index for text books

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    Eastland College is concerned about the rising price of textbooks that students must
    purchase. To better identify the increase in the price of textbooks, the dean asks you,
    the Economics Department's star student, to create an index of textbook prices. The
    average student purchases three English, two math, and four economics textbooks.
    The prices of these books are given in the accompanying table.

    Year 2002 2003 2004

    English textbook $50 $55 $57

    Math textbook 70 72 74

    Economics textbook 80 90 100

    © BrainMass Inc. brainmass.com October 9, 2019, 10:12 pm ad1c9bdddf
    https://brainmass.com/economics/macroeconomics/calculating-price-index-text-books-212176

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    2002 2003 2004
    Number of ...

    Solution Summary

    The solution describes the steps for creating weighted price index for textbooks.

    $2.19