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Index numbers are a formula used to compare values from different time periods. Q1 is the value at a specific time, while Q0 is the value at the base time. Price index involves prices, where P1/P0 is used. Remember to place the quantity or price at the base time at the bottom. For example, calculate the price index in 2021 based on 2020 by dividing the value in 2021 by the value in 2020 and multiplying by 100.