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ECO402 Microeconomics Assignment No 01 Solution & Discussion Fall 2017

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Eco402
Assignment 1
Prepared by Samil Rajpoot

A. By assuming Jan-2015 as base year, find real price of chicken, eggs and tea in each year. After stepwise calculation, you are required to complete the following table for answer.

By using the formula



Item Unit Year Nominal Price CPI Real Price
Chicken
(Live)
3 kg Jan -2015 400.50 203.62 400.50
Jan -2016 421.13 184.93 463.70

Jan -2017 450.63 153.54 597.65
Eggs
Dozen Jan -2015 115.20 238.54 115.20
Jan -2016 103.75 205.86 120.23
Jan -2017 128.13 251.58 121.48
Tea
(packet)
200gms Jan -2015 128.42 215.61 128.42
Jan -2016 189.47 284.13 143.77
Jan -2017 190.95 266.44 154.52

B. If base year bundle has 3 kg chicken, 1 dozen eggs and 200gms tea, than find Laspeyres index by assuming Jan-2015 as base year and Jan-2017 as current year.

Solution:


Laspeyres Index = 119

Thanks a lot, 

How did you find Laspeyres Index?  

ye part b detail me dyn plz

Yehi full ans hai

ECO402 Assignment 1 Solution File

Attachments:

Please guide me how to calculate Laspeyres cost. I am trying to calculate but i am little confuse

bhai is solution me A part me sirf table complate ki hai.... means direct real price likhi hai ... is me step b dekhane hai  for example ....

Chicken (Live) 3KG

Year 2015

Real Price = 203.62/203.62*400.50 = 400.50


isi tarhan 2016, 2017 k step hongye har item k 

Yes brother, step bhi likhnay hain

yes from lec3

Please guide step by step process of calcualting Laspeyres cost

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