Question

A product labeled "new and improved" would fall within the category of a

Answer 1

A 'new and improved' product is considered an innovation and may take time to be included in the Consumer Price Index (CPI) basket of goods due to periodic revisions of the index.

Step-by-step explanation:

A product labeled "new and improved" would typically be considered an innovation in a market, representing a significant update or upgrade over past offerings. With reference to indicators like the Consumer Price Index (CPI), new and innovative products do not immediately enter this measure's basket of goods and services. The CPI is revised and updated periodically, meaning there is often a lag before new products are included. Historical examples include the delay in adding room air conditioners, VCRs, personal computers, and cell phones to the CPI basket after they became widely available and used by consumers.

Answer 2

A product labeled "new and improved" indicates a significant upgrade or a new market entrant, relevant to updates in the CPI basket which may lag behind actual product availability.

Step-by-step explanation:

When a product is labeled "new and improved," it often signifies that it has undergone significant changes or enhancements that differentiate it from earlier versions or it may be a novel addition to a market. This concept relates to the Consumer Price Index (CPI), which measures changes in price levels of a basket of consumer goods and services over time. New products tend to be incorporated into the CPI basket with some delay after they become widely available, as the context of the CPI basket is based on a fixed list of goods which is only updated periodically to reflect current consumer purchasing habits. For instance, the introduction of room air conditioners and personal computers into the market took place significantly earlier than their inclusion in the CPI basket of goods. Similarly, despite the widespread use of cellular phones by millions, it took time before they were recognized in the CPI basket. Overall, the process of updating the CPI can lag behind the actual emergence and prevalence of new technologies and products.