Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter 6. INDEX NUMBERS
Q.4. Distinguish between
3. Laaspeyre's Index and Paasche's Index.
Laaspeyre's Index
Paasche's Index
1. In Laaspeyre's index, base year quantities are taken as weights.
1. In Paasche's index, current year quantities are taken as weights.
2. Laaspeyre's index can be calculated as
Laaspeyre's index = p1q0/p0q0 * 100
∑p1q0/∑p0q0×100
2. Paasche's index can be calculated as
Paasche's index = p1q1/p0q1* 100
∑p1q1/∑p0q1×100
