The table shows the quantities produced and prices in 2015 and 2016 for an islan
ID: 1120334 • Letter: T
Question
The table shows the quantities produced and prices in 2015 and 2016 for an island economy, which produces only apples and pears.
The base year is 2015.
Calculate the value of 2016 production in 2015 prices and the percentage increase in production when valued at 2015 prices.
The value of 2016 production in 2015 prices is $______.
In 2015
Item
Quantity
Price
Apples
boxes
$10
box
Pears
boxes
$11
box
In 2016
Item
Quantity
Price
Apples
boxes
$15
box
Pears
boxes
$9
box
In 2015
Item
Quantity
Price
Apples
93boxes
$10
abox
Pears
60boxes
$11
abox
Explanation / Answer
The value of 2016 production in 2015 prices is
=113*10+70*11
=1900
percentage increase in production =((113*10+70*11)/(93*10+60*11))-1
=19.50%
the above is the answer
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