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hello,
Can i get an exact formula for laspeyre price index since the revision kit-bpp has calculated it in another way.There is only one way of calculating a Laspeyre price index.
Don’t learn it as a formula – you only risk forgetting it, or using it wrong in the middle of an exam. In addition the examiner is clever and tests in ways that make sure you understand what it is and are not simply learning a formula.
It is always calculated by comparing the current prices of the base period quantities with the base period prices of base period quantities.
If you watch my free lecture on index numbers then you will see that I go through an example calculating both Laspeyre and Paasche prices indices.
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