Estimating the simple aggregate price index.
Betts Electronics purchases three replacement parts for robotic machines used in their manufacturing process. Information on the price of the replacement parts and the quantity purchased is given below.
|
Part
|
Price
2000 2004
|
Quantity
2000 2004
|
|
RC-33
|
$0.50
|
$0.60
|
320
|
340
|
|
SM-14
|
$1.20
|
$0.90
|
110
|
130
|
|
WC50
|
$0.85
|
$1.00
|
230
|
250
|
Compute a simple aggregate price index for 2004. Use 2000 as the base period.