A price index that includes consumption quantities is a(n)
A) unweighted price index.
B) Paasche price index.
C) simple price.
D) Laspeyres price index.

Question

Quizplus · Accepted Answer

A price index that includes consumption quantities is a Laspeyres or Paasche price index. However, the Paasche price index is the one that takes into account the current period consumption quantities, making it the best choice in this case.

A Price Index That Includes Consumption Quantities Is A(n)