The formula ∑poqn/∑poqo x100 is used to calculate_______________?
Correct answer: C. The Laspeyres quantity index
- A. The Laspeyres price index
- B. The Paasche quantity index
- C. The Laspeyres quantity index
- D. The Paasche price index
Explanation
The formula uses current quantities, qn, valued at base-period prices, p0, and compares them with base quantities valued at p0. That is the Laspeyres quantity index.
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