Answer :

To answer the question about finding Paasche's index number, we first need to understand what Paasche's index is. It is a method used to measure the price change or inflation between two periods, based on the current period's quantities.

The formula for Paasche's price index is given by:

[tex]P_{01}^{P} = \frac{\sum (p_1 \times q_1)}{\sum (p_0 \times q_1)} \times 100[/tex]

Where:

  • [tex]p_1[/tex] is the price in the current period (period 1)
  • [tex]p_0[/tex] is the price in the base period (period 0)
  • [tex]q_1[/tex] is the quantity in the current period (period 1)

However, in this case, it seems to be a simplified form or a typographical shorthand, where the final Paasche's index [tex]P_{01}^f[/tex] is already provided as 97.6.

In such a scenario, if the student's task was to find Paasche's index from the information given as:

  • [tex]P_{01}^k = 96.8[/tex] (which might represent another related index, possibly Laspeyres or another calculation shared alongside for reference)
  • [tex]P_{01}^f = 97.6[/tex] (representing Paasche's index directly)

Then the Paasche's index is simply stated as 97.6.

Thus, the final answer to the question is that Paasche's index number is 97.6. The interpretation of this value means that, based on the current period's quantities, prices have increased by 97.6 percent compared to the base period, indicating a slight increase in overall prices over the period considered.

Thanks for taking the time to read If P 01 k 96 8 and P 01 f 97 6 then find Paasche s index number. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada