Question
Price Index and Quantity Index.

Answer

Price Index NumberQuantity Index Number
(a) Price index number measures the changes in price over a period of time.(a) Quantity index number measures the changes in quantity over a period of time.
(b) It can be used for measuring the changes in prices as well as other purpose e.g. in fixing wages, interest rates, tax rates, etc.(b) It can be used only for measuring the changes in the quantities e.g. of items like exports, imports, etc.
(c) It is a very popular concept and can be easily calculated and understood.(c) It is not so popular as it cannot be easily calculated.

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