What is the difference between a price index and a quantity index - Economics - Index Numbers

Question

What is the difference between a price index and a quantity
index?

Bhawna Madaan · Accepted Answer

Price Index

Quantity Index

1

Price Index Number is calculated by two methods, namely

1

Quantity Index Number is calculated by two methods, namely

a

Simple Aggregative Method

a

Weighted Average of Price Relative Method

b

Simple Average of Price Relative Method

b

Weighted Aggregative Method

2

Price Index number is also known as Unweighted Index Number

2

Quantity Index Number is also known as Weighted Index Number

3

Price Index Number takes into account the prices of the commodity
of the base year as well as of the current year

3

Quantity Index takes into consideration the weights of goods
assigned according to the quantity

Price Index			Quantity Index
1.	Price Index Number is calculated by two methods, namely		1.	Quantity Index Number is calculated by two methods, namely
	a.	Simple Aggregative Method		a.	Weighted Average of Price Relative Method
	b.	Simple Average of Price Relative Method		b.	Weighted Aggregative Method.
2.	Price Index number is also known as Unweighted Index Number		2.	Quantity Index Number is also known as Weighted Index Number.
3.	Price Index Number takes into account the prices of the commodity of the base year as well as of the current year.		3.	Quantity Index takes into consideration the weights of goods assigned according to the quantity.

What is the difference between a price index and a quantity index?