A Level Economics (9708)•9708/13/M/J/18

Explanation
Weighted Price Index Calculation Requires All Expenditure Weights Steps:
- Identify expenditure weights from ratio 2:1:3 for food, clothing, accommodation, and transport; total parts sum to 6, but four categories imply incomplete ratio for transport.
- Note price changes: food +10%, clothing +4%, accommodation +10%, transport +0%.
- Compute index increase using Laspeyres formula: % change = ∑ (weight_i × price change_i), where weights sum to 1.
- Recognize transport weight is unspecified, preventing normalization of weights and exact calculation.
Not enough information.
Why B is correct:
- N/A; cannot verify without complete weights.
Why the others are wrong:
- A: Underestimates by ignoring full weighted impact.
- C: Overstates by averaging only inflating categories.
- D: Exaggerates total change without dilution from constant transport.
Final answer: Not enough information.
Topic: Price stability
Practice more A Level Economics (9708) questions on mMCQ.me