Agricultural price analysis questions.

The 12 major groups in the new CPI based on COICOP(Classification of Individual consumption by purpose) are:

Consider the information given in the table below

1. Calculate Laspeyres price index
2. Calculate Paasche price index
3. What does each index in (i) and (ii) above mean?

In analyzing quantity response to price we are in fact assuming static assumption that is consumers will respond instaneously to a change in price(a static demand). Explain how does this assumption help in analyzing quantity response to price?

The dynamic concept is said to be used in two ways in demand theory. Basing on knowledge you have about this concept ascertain the ways in which it is used in demand theory.

Tracking the product from the farm gate to final consumer is said to be a very important task in measuring marketing margins and costs. Explain the importance of doing so as far as measuring marketing margins and costs are concerned?

In assessing marketing costs there one major challenge and this emanate from joint costs. This is because many marketing resources are shared , leading to a problem of how to apportion these joint costs between the various commodities. However, there is a way out; ascertain how you can resolve this problem?

Gross margins and marketing mark-ups are said to be constrained in generalizing  the marketing margins. Highlight these constraints.

Variation of price through time (trend) is said to be important in economic forecasting/prediction. However, this is complicated when it comes to cyclical behaviour. Substantiate this assertion.

Time series data trends are useful in forecasting, however, this is said to be hindered by one major problem. Basing on your understanding on these data, explain what is actually limiting these data from being used directly in forecasting?

Explain how to overcome unexplained/unpredictable fluctuations in the time series data?