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Price indices play a crucial role in measuring changes in prices of goods and services. This presentation covers the construction of price indices, defining purposes, selecting base periods, assigning weights, and more. Explore the purpose, scope, and coverage of price indices as measures of inflati

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The process of constructing a price index involves various steps such as computation of price relatives, aggregation at different levels, selection of base period, and designing data collection methods. Weighted arithmetic mean and simple ratio calculations are used in aggregating price indices. A t

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Elasticity in economics refers to the responsiveness of demand to price changes. A more elastic curve results in larger quantity changes for small price changes, while a less elastic curve requires larger price changes to affect quantity consumed. The elasticity of demand can be measured by calculat

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