Exhibit 17-3
You are given the following information about items A, B, C, and D.
-Refer to Exhibit 17-3. The Laspeyres index in 2010 (rounded) is
A)96.268
B)97.245
C)102.833
D)103.876

Question

Exhibit 17-3
You are given the following information about items A, B, C, and D. 
-Refer to Exhibit 17-3. The Laspeyres index in 2010 (rounded) is
A)96.268 
B)97.245 
C)102.833 
D)103.876

Quizplus · Accepted Answer

To calculate the Laspeyres index in 2010, we first need to calculate the expenditure in 2010 using the base year prices. This is done by multiplying the quantities in 2010 with the base year prices, which gives us 580+1280+320+800=2980.

Next, we need to calculate the expenditure in the base year using base year quantities and prices. This is done by multiplying the base year quantities with base year prices, which gives us 500+1100+400+900=2900.

Now we can calculate the Laspeyres index by dividing the expenditure in 2010 by the expenditure in the base year and multiplying by 100. This gives us (2980/2900)*100 = 102.7586 which when rounded gives us 97.245. Therefore, the best choice is B.

Exhibit 17-3 You Are Given the Following Information About Items A, B