Advertisement Remove all ads

Distinguish between Price Index and Quantity Index. - Economics

Distinguish Between

Distinguish between

Price Index and Quantity Index.

Advertisement Remove all ads

Solution

Price Index

Quantity Index

Price Index Number is calculated by two methods, namely

  1. Simple Aggregative Method
  2. Simple Average of Price Relative Method

Quantity Index Number is calculated by two methods, namely

  1. Weighted Average of Price Relative Method
  2. Weighted Aggregative Method
Price Index number is also known as the Unweighted Index Number. Quantity Index Number is also known as Weighted Index Number.
Price Index Number takes into account the prices of the commodity of the base year as well as of the current year. Quantity Index takes into consideration the weights of goods assigned according to the quantity.
Concept: Construction of Index Numbers
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 6 Index Numbers
Exercise | Q 4. (2) | Page 60
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×