Quantity Or Volume Index Number

Price index numbers measures and permit comparison of the price of certain goods; quantity index number, on the other hand, measures the physical volume of production, construction of employment. Though price indices are more widely used, production indices are highly significant as indicators of the level of output in the economy or in parts of it.

In constructing quantity index numbers, the problems confronting the statistician are analogous to those involved in price indices. We measure changes in quantities, and when we weigh we use prices or values as weights Quantity indices can be obtained easily by changing p to q and q to p in the various formulae discussed above.

Thus, when laspeyres method is used
 

When Paasche’s formula is used


When Fisher’s formula is used


These formulae represent the quantity index in which the quantities of the different commodities are weighted by their prices. However any other suitable weights can be used instead.

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