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Estimating the simple aggregate price index.
Betts Electronics purchases three replacement parts for robotic machines used in their manufacturing process. Information on the price of the replacement parts and the quantity purchased is given below.
Part
Price
2000 2004
Quantity
RC-33
$0.50
$0.60
320
340
SM-14
$1.20
$0.90
110
130
WC50
$0.85
$1.00
230
250
Compute a simple aggregate price index for 2004. Use 2000 as the base period.
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