True or False: The Laspeyres price index has the disadvantage that the consumption pattern in the initial period might be quite different from that in the current period and,hence,does not reflect accurately the current consumption cost.

Question

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The Laspeyres price index uses base period quantities as weights to calculate price changes, but these weights do not reflect changes in consumption patterns over time. Therefore, the Laspeyres price index may not accurately reflect current consumption costs.

True or False: the Laspeyres Price Index Has the Disadvantage