Laspeyres price index uses which quantity weights? MCQ with Answer and Explanation

Laspeyres price index uses which quantity weights?
A. Average of base and current quantities
B. Geometric mean of quantities
C. Current period quantities
D. Base period quantities
Answer: Option D
Solution (By JKSSB Mock Tests)
Laspeyres index = Σ(p₁q₀)/Σ(p₀q₀) × 100, using base period quantities (q₀) as weights, which may overstate inflation if consumers substitute away from goods with rising prices.

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