Reference no: EM13575370

An index of two store items for 2007 based on 2005 is to be constructed. The information for the prices and quantities for both years is given below. Use 2005 as the base period and 100 as the base value.

                                      2005                                      2007

Item                Price ($)         Quantity        Price ($)         Quantity

Item 1             80                    503                 91                    529

Item 2             45                    1158               52                    1251

For full marks your answer should be accurate to at least one decimal place.

Determine Paasche's price index.