Question

Distinguish between Quantity index number and Value index number.

Hint:

Quantity index reflects the physical quantity change, while value index accounts for both price and quantity changes.

Answer 1

Quantity Index Number measures the relative change in the quantity of a group of commodities over a period of time. It compares the quantity of goods in one period to the quantity in a base period.
Value Index Number measures the relative change in the value of a group of commodities. It is calculated by multiplying the quantity of goods by their prices and comparing the total value over time. Final Answer: \[ \boxed{Quantity \; Index \; measures \; change \; in \; quantities, \; while \; Value \; Index \; measures \; change \; in \; total \; value.} \]