Question

PURPOSE
This individual assignment gives a practical look at how price indices are measured. It also establishes base prices for calculating inflation rates.

INSTRUCTIONS
Students should pick real transaction prices for goods they actually purchase, in a country of their choice (It does not have to be Japan). One can use prices from catalogs or online shops/retailers depending on their real purchasing habits, if it is possible to track down the prices from the same retail platform for a few years (including the base year).
Make sure to clearly state your assumptions, process and methodology and problems faced.

POINTS FOR DISCUSSION
This assignment introduces the idea of market based selection for price indices. The goods that students usually pick for their market basket account for a relatively small portion of consumer spending. Also write your assessment as to which goods are likely to change prices frequently.

THE ASSIGNMENT
The Consumer Price Index includes the prices of hundreds of goods purchased by base consumers. It is possible to construct many other price indexes.
Your Mission: Create a personalized Price Index

STEPS
1. CHOOSE FIVE OR MORE DIFFERENT PRODUCTS (be specific e.g. unleaded petrol, Asahi Super Dry)
2. PICK A QUANTITY FOR EACH PRODUCT (e.g.30 Litres of Petrol, 12 Bottles/Cans of Asahi Super Dry)
3. FIND THE ACTUAL PRICE OF THESE PRODUCTS
4. CALCULATE THE TOTAL COST OF BUYING THESE PRODUCTS
5. CHOOSE THE BASE YEAR AND COMPUTE THE INDEX

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Consumer Price Index

A consumer price index measure changes in the price level of market basket of consumer goods and services purchased by households. The aim of this paper is to present a personalized Price Index and to show changes in prices of goods and services. Prices for this assessment are taken from the online shop Amazon.com because it is possible to track down the prices for a few years. The following products are included in market basket:
• Laffy Taffy Candy Jar, Banana (1 pack = 145 peaces) = $13.54, $13.93, $9.97 from 2015 to 2017, respectively
• Pacific Foods Organic Roosted Red Pepper and Tomato Soup (1 box =12 packs) = $19.94, $20.91, $20.27 from 2015 to 2017, respectively
• Potato Chips Cape Cold Original (1 pack) = $2.73, $2.89, $2.88 from 2015 to 2017, respectively...

This is only a preview of the solution. Please use the purchase button to see the entire solution

Assisting Tutor

Related Homework Solutions

Business Statistics Questions
Homework Solution
$38.00
Business
Statistics
Time Series
Data Sets
Significance
Regression
Equations
Reports
Dynamic Models
Bias
Random Variables
Economic Development
Homework Solution
$38.00
Business
Economics
Development
Expenditures
Poverty
South
Africa
Income
Regression
Model
Economics Questions
Homework Solution
$23.00
Business
Economics
Calculation
Wal-Mart
Store
Population
New York
City
Elasticity
Joplin
Weather
Economics Questions
Homework Solution
$43.00
Business
Economics
US
Recession
Government
Price
Equilibrium
Market
Quantity
Industry
Economics Questions
Homework Solution
$75.00
Business
Economics
US
Trade
Deficit
Export
Value
Tax
Deficit
Bank
GDP
Equilibrium
Inflation
Economics Questions
Homework Solution
$23.00
Business
Economics
Hot
Air
Balloon
Rides
Airlines
Cost
Benefit
Airport
Equilibrium
Market
Profit
Get help from a qualified tutor
Live Chats