The following table shows the prices of three types of raw materials used by manufacturing plants and the quantities used in the two years 2004 and 2005:
Year 2004 2005
Groups Prices Quantity used Prices Quantity used
(£) (000s) (£) (000s)
Coal (tonnes) 20 40 30 30
Oil (barrels) 75 80 80 80
Iron ore (tonnes) 40 96 36 98
(i) Construct a simple aggregate index of raw material prices for 2005, using 2004 as the base year.
(ii) Construct a Laspeyres index of raw material prices for 2005, using 2004 as the base year.
(iii) Construct a Paasche index of raw material prices for 2005, using 2004 as the base year.
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