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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