Question

Distinguish between :

Price index and quantity index.

Answer 1

Basis of difference	Quantity index number	Price index number
Definition	Measures relative changes in the quantities of goods produced over a period of time.	Measures relative changes in the prices of goods produced over a period of time.
Formula	$\frac{\sum P_0{Q}_1}{\sum P_0{Q}_0}\times 100$	$\frac{\sum P_1{Q}_0}{\sum P_0{Q}_0}\times 100$
Indication	Indicates the level of change in output and its progress over time.	Indicates the level of change in prices and its progress over time.