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Zackron Associates, international corporate lawyers, use both email and fax to transmit documents. The company accountant has worked out that the price of sending a document by fax has increased from $0.25 in 1998 to $0.45 in 2003. The price of sending a document by email has increased from $0.50 in 1998 to $0.60 in 2003.
In 1998 the company sent 23,000 documents by fax and 1500 documents by email. In 2003 they sent 12,000 documents by fax and 15,000 by email.
a) Calculate the weighted aggregate price index for hte prices in 2003 based on the prices in 1998 using the Laspeyre method.
b) Calculate the weighted aggregate price index for 2003 with 1998 as the base year using the Paasche method.
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