Which of the Following Statements Is True About Price-Weighted Indexes

Multiple Choice

Which of the following statements is true about price-weighted indexes?
I. The Laspeyres index uses base-period quantities as weights.
II. The Paasche index tends to underweight goods whose prices have gone down.
III. The Paasche index uses current-period quantities as weights.

A) I only
B) II only
C) I and III
D) II and III