The following information was recorded for a range of DIY items.
![](https://test.transtutors.com/qimg/2ba9d63b-4787-4a0d-b784-82b85ab62f04.png)
a. Construct a simple price index for item Y using Year 0 as the base year.
b. Determine the simple aggregate price index using Year 0 as the base year.
c. Determine the price relatives index using Year 0 as the base year.
d. Calculate the Laspeyres price index using Year 0 as the base year.
e. Calculate the Paasche price index using Year 0 as the base year.
f. Calculate the Laspeyres quantity index using Year 0 as the base year. Note: here we wish to keep prices fixed, and thus the appropriate formula is:
![](https://test.transtutors.com/qimg/47dc6263-6ec7-4a4a-a139-9c44227b8713.png)
g. Calculate the Paasche quantity index using Year 0 as the base year. Note: here we are using the current year prices as the fixed weights, and thus the appropriate formula is:
![](https://test.transtutors.com/qimg/7e1f39a2-b423-4752-b0b7-cb7a0c0de3a0.png)
h. Why do the Laspeyres and Paasche indices give such different answers for Year 2 in Parts (d) to (g)?