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Prices, location and spread
Prices, location and spread

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2 Weighted means

For goods and services, price changes vary considerably from one to another. Central to the theme question of this course, Are people getting better or worse off?, there is a need to find a fair method of calculating the average price change over a wide range of goods and services. Clearly a 10% rise in the price of bread is of greater significance to most people than a similar rise in the price of clothes pegs, say. What we need to take account of, then, are the relative weightings attached to the various price changes under consideration.