Question

12. Limitations of the CPI Indicate which of the problems in the construction of the CPI are illustrated in each of the following situations. Situation Introduction of New Goods Unmeasured Quality Change Substitution Bias

A) The invention of cell phones
B) The introduction of air bags in cars 4
C) Increased personal computer purchases in response to a decline in their price
D) More scoops of raisins in each package of Raisin Bran
E) Greater use of fuel-efficient cars after gasoline prices increase

Answer 1

C. Increased personal computer purchases in response to a decline in their price

E. Greater use of fuel-efficient cars after gasoline prices increase

Step-by-step explanation: