Question

Consider tablets which are used by a majority of consumers. Suppose that due to the development of 5G technology, tablets underwent a major advance from 2020 to 2021 in terms of the number of functions they could do. The tablets in 2021 sold at the same price as those in 2020. What would be the effect on the CPI?

Answer 1

Tablets are used by a majority of consumers. Although the tablets underwent a major advance from 2020 to 2021, the price of the tablets remained the same. Therefore, the CPI would largely remain the same as the price of tablets remained the same.

Unchanged CPI