If All Prices Increase by 20

Multiple Choice

If all prices increase by 20%,

A) the Paasche price index increases by more than 20% and the Laspeyres price index increases by less than 20%.
B) the Laspeyres price index increases by more than 20% and the Paasche price index increases by less than 20%.
C) both the Paasche price index and the Laspeyres price index increase by more than 20%.
D) both the Paasche price index and the Laspeyres price index increase by exactly 20%.
E) both the Paasche price index and the Laspeyres price index increase by less than 20%.