The Laspeyres index is a weighted aggregate price index where the weight for each item is its
A) current-period quantity.
B) base-period price.
C) current-period price.
D) base-period quantity.

Question

Quizplus · Accepted Answer

The Laspeyres index compares the cost of purchasing the same quantity of goods in the current period to the cost of purchasing the same quantity of goods in the base period, using the base-period quantity as the weight. Therefore, the weight for each item is its base-period quantity, making option D the correct choice.

The Laspeyres Index Is a Weighted Aggregate Price Index Where