Which quantities are used in Paasche's price index?
Correct answer: B. Current-period quantities
- A. Base-period quantities
- B. Current-period quantities
- C. Average-period quantities
- D. Fixed standard quantities
Explanation
Paasche's price index uses current-period quantities as weights while comparing current and base prices. Base-period quantities are used by Laspeyres' index, which is the common trap.
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