Three Firms, X, Y, and Z, Operate in the Same

Multiple Choice

Three firms, X, Y, and Z, operate in the same industry, although their products have different features and are priced differently. The following table provides the prices and the quantities sold (in units) during the period 2000 to 2002. Compute the Paasche price index for 2001 if the base period is 2000 and the current period is 2002.

A) 105.12
B) 94.11
C) 92.85
D) 98.92