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) 135.63
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) 135.63 
C) 70.23 
D) 73.73

Quizplus · Accepted Answer

To calculate the Laspeyres price index, we need to sum the current prices of the items and divide by the sum of the base year prices of the same items, then multiply by 100. Using the provided data:
Sum of current prices = $200.33
Sum of base year prices = $147.55
Laspeyres price index = ($200.33/$147.55) x 100 = 135.63. Therefore, the answer is B.

You Are Given the Following Information on Selected Food Items