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Laspeyres' price index uses weights from
ABase year quantity
BCurrent year quantity
CAverage of current and base
DGeometric mean of quantities
Answer & Solution
Correct answer: A. Base year quantity
1. Laspeyres' formula: ΣP₁Q₀ / ΣP₀Q₀ × 100.
2. It fixes the basket at base year quantities.
3. Paasche uses current year quantities; Fisher uses geometric mean of the two.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 3 "Index Numbers", §3.2 ¶§3.2_
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