Homework Sourse23 A management consulting firm consists of three partners w
23. A management consulting firm consists of three partners, whose number of clients and average fee per client were as shown below for 1988 through 1990:
Number of Average Billing
Clients Served per Client
a. Using 1988 as the base period, what is the simple aggregate price index for clients served in 1989? In 1990?
b. Using 1988 as the base period, what is the simple aggregate quantity index for the number of clients served in 1989? In 1990?
| a | b | c | a | b | c | |||
| 1988 | 8 | 10 | 3 | $2,500 | $15,000 | 65,000 | ||
| 1989 | 10 | 8 | 4 | $1,500 | $20,000 | $50,000 | ||
| 1990 | 15 | 12 | 2 | $3,000 | 10,000 | $80,000 | ||
Solution
