Exhibit 1

Year 1
Expenditures Quantity Price
Oranges$3.003010¢
Apples$2.001020¢
Total fruit$5.00
Year 2
Expenditures Quantity Price
Oranges$4.002020¢
Apples$5.002025¢
Total fruit$9.00
Panel A.Year 1 weighted quantity change measure for fruit
= [(20 × 10¢) + (20 × 20¢)] ÷ [(30 × 10¢) + (10 × 20¢)]
= Hypothetical expenditure on fruit in year 2 using year 1 prices, divided by actual expenditure on fruit in year 1
= $6.00/$5.00 = 1.20
Panel B. Year 2 weighted quantity change measure for fruit
= [(20 × 20¢) + (20 × 25¢)] ÷ [(30 × 20¢) + (10 × 25¢)]
= Actual expenditure on fruit in year 2, divided by hypothetical expenditure on fruit in year 1 using year 2 prices
= $9.00/$8.50 = 1.06