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Question -

What is the difference between a price index and a quantity index?



Answer -

The difference between a price index and a quantity index is as follows

  1. Price index numbers measure and allow for comparison of the prices of certain goods while quantity index number measure the changes in the physical volume of production, construction or employment.
  2. Price index numbers are more widely used as compared to quantity index numbers.
  3. Price index is known as unweighted index number while quantity index number is known was weighted index numbers.

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