Ans: Both Laspeyres and Paasche Indexes are used for calculating price level changes over time. They use the prices of goods and services in a base year and an observation year to calculate changes in price levels.  Laspeyres and Paasche Indexes have a lot of similarities. However, the main difference and a distinct feature of the Laspeyres Index is that it uses base year quantities as weights. The Paasche Index instead makes use of current year quantities as weights.