The Price Index

adjustment already answer appear argument assert average base become bias bundle choice classical compatible complete conclusion condition conical considered consistency constructed consumer consumption corresponding cost defined definition demands determined distinction economic entire equivalent existence expansion FIGURE Fisher follows formula function further given gives gradient GROUP homogeneous homogeneous quadratic hypothesis idea immediate implies incomes incomes Mo incremental index numbers indices individual inflation rate interval Laspeyres least limits linear lines lower M₁ matter meaning necessary obtained original P₁ Paasche pair particular periods possible practice preference present price index problem purchasing power quadratic quadratic utility question relation remark represented restriction result revealed preference shown shows simple simultaneously compatible standard statistical sufficient THEOREM theory true index upper UrXs usual utility function utility order values