Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board

Chapter 6. INDEX NUMBERS

Q.4. Distinguish between

3. Laaspeyre's Index and Paasche's Index.

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board

Chapter 6. INDEX NUMBERS

Q.4. Distinguish between

3. Laaspeyre's Index and Paasche's Index.

Laaspeyre's Index | Paasche's Index |

1. In Laaspeyre's index, base year quantities are taken as weights. | 1. In Paasche's index, current year quantities are taken as weights. |

2. Laaspeyre's index can be calculated as Laaspeyre's index = p1q0/p0q0 * 100 ∑p1q0/∑p0q0×100 | 2. Paasche's index can be calculated as Paasche's index = p1q1/p0q1* 100 ∑p1q1/∑p0q1×100 |