Question

53. With regard to Laspeyre's and Paasche's price index numbers, it is maintained that "If the
prices of all the goods change in the same ratio, the two indices will be equal for them the
weighting system is irrelevant; or if the quantities of all the goods change in the same
ratio, they will be equal, for them the two weighting systems are the same relatively”.
Then the above statements satisfy.
(a) Laspeyre's Price index + Paasche's Price Index.
(b) Laspeyre's Price Index = Paasche's Price Index.
(c) Laspeyre's Price Index may be equal Paasche's Price Index.
(d) None of these.
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Answer 1

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