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Two Methods of Computing a Weighted Price Index Are the Laspeyres

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Two methods of computing a weighted price index are the Laspeyres method and Paasche's method.


Definitions:

Supply Schedule

A table or graph showing the quantity of a product that producers are willing to supply at different prices over a specified period.

Supply Curve

An illustrated depiction that maps out the connection between a product's price and the volume of the product that providers are ready to sell.

Supply

The total amount of a product or service that is available for consumers.

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices during a certain period.

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