In a Laspeyres price index what value is used for the weights of components?
A) Base time period prices
B) Base time period index values
C) Base time period prices squared
D) Base time period quantities

Question

Quizplus · Accepted Answer

In a Laspeyres price index, the weights of components are based on the quantities from the base time period. This means that the index measures how much more or less expensive the base period basket of goods would cost at current prices, keeping the quantities constant.

In a Laspeyres Price Index What Value Is Used for the Weights