When constructing a weighted aggregate price index, the weights usually are _____.
A)prices of substitute items
B)prices of complementary items
C)quantities of the respective items
D)squared quantities of the respective items
E)quality of individual items

Question

Quizplus · Accepted Answer

Weights in a weighted aggregate price index typically represent the quantities of the respective items, as this reflects their relative importance or share in the aggregate measure being calculated.

When Constructing a Weighted Aggregate Price Index, the Weights Usually