The Paasche price index formula is similar to the Laspeyres formula. What is the main difference between the two formulas?
1
The Paasche formula uses current year quantities while the Laspeyres formula uses base year quantities
2
The Paasche formula uses current year prices while the Laspeyres formula uses base year prices
3
The Paasche formula uses both current year quantities and prices while the Laspeyres formula uses both base year quantities and prices
4
The Paasche formula uses base year quantities and current year prices while the Laspeyres formula uses base year prices and current year quantities