The Laspeyres price index has the disadvantage that consumption pattern in the initial period might be quite different than 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 the consumption pattern of the initial period, which may not reflect the current consumption pattern. Therefore, it does not accurately reflect the current consumption cost.

The Laspeyres Price Index Has the Disadvantage That Consumption Pattern