Question

A certain beverage company provides a complete line of beer, wine, and soft drink products for distribution through retail outlets in central Iowa. Unit price data for 2011 and 2014 and quantities sold in cases for 2011 follow. Use 2011 as the base period. Unit Price ($) Item 2011 Quantity (cases) 2011 2014 Beer 30,000 19.50 20.15 Wine 5,000 100.00 120.00 Soft drink 70,000 8.00 8.80 Compute the price relatives for this company's products. (Round your answers to two decimal places.) Item Price Relative Beer Wine Soft drink Use a weighted average of price relatives to show that this method provides the same index as the weighted aggregate method. (Round your answers to the nearest integer.) weighted average of price relatives index weighted aggregate price index

Answer 1

Price relative =2014 price/2011 Price

	Price relative
Beer	103.33
Wine	120.00
Soft drink	110.00

weighted average of price relative index =((Σptqo/(Σpoqo))*100=			111
weighted aggregate price index=111