Since a(n)____________ index employs the base-period quantities in all succeeding periods,it allows for ready comparisons for identical quantities of goods purchased between the base period and all succeeding periods.
A)Simple
B)Aggregate
C)Laspeyres
D)Paasche
E)Quantity

Question

Quizplus · Accepted Answer

Laspeyres index measures the change in the quantity of goods purchased in successive periods using the base period prices. It is a fixed-base index and is suitable for comparing the prices of the identical quantities purchased in the base period and all succeeding periods. Therefore, Laspeyres index is the best choice for the given scenario.

Since A(n)____________ Index Employs the Base-Period Quantities in All Succeeding