Question

Define/ Explain the concepts:−

Quantity index numbers

Answer 1

Quantity index number is used to calculate the changes in the quantities of industrial or agricultural goods produced in a year with reference to the base year. In other words, these quantity indices are used to measure relative changes in quantities over a time period, which indicates the level of output and its progress over a period of time.
Mathematically,

Quantity index number $=\frac{\sum P_0{Q}_1}{\sum P_0{Q}_0}\times 100$