differentiate between laspeyres indexand paasche index.
Dear Student,
In Laspeyre's index, base year quantities are taken as weights. The formula for calculating index is:
On the other hand, in Paasche's index, current year quantities are taken as weights. The formula for calculating index is:
In Laspeyre's index, base year quantities are taken as weights. The formula for calculating index is:
On the other hand, in Paasche's index, current year quantities are taken as weights. The formula for calculating index is: