Question

What is the difference between a price index and a quantity index?

Answer 1

Price Index	Quantity Index
1. Price Index Number is calculated by two methods, namely. Simple Aggregative Method Simple Average of Price Relative Method	1. Quantity Index Number is calculated by two methods, namely Weighted Average of Price Relative Method  Weighted Aggregative Method
2. Price Index number is also known as Unweighted Index Number.	2. Quantity Index Number is also known as Weighted Index Number.
3. Price Index Number takes into account the prices of the commodity of the base year as well as of the current year.	3. Quantity Index takes into consideration the weights of goods assigned according to the quantity.