A car dealer offers three types of cars: Audi, Skoda, and Seat

Subject:BusinessPrice:3.87 Bought7

Share With

A car dealer offers three types of cars: Audi, Skoda, and Seat. In 2014 Audis cost 35,000 EUR, Skodas cost 24,450 EUR, and Seats cost 27,860 EUR. In that year, 43% of the turnover came from the sales of Skodas and 23% derived from selling Seats. In 2019 Audis were offered for 36,550 EUR, Skodas for 23,770 EUR and Seats for 28,110 EUR. Turnover grew in all brands by 12.5% in 2019 compared to 2014.

1. Calculate and interpret the Laspeyres Price index for 2019 with 2014 as the base year. 
2. Calculate and interpret the Paasche Price index for 2019 with 2014 as the base year. 
3. Calculate and interpret the Fisher Price index for 2019 with 2014 as the base year.