Calculating inflation using a simple price index

Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.

A. A new mobile device for personal computing became available for purchase.

B. Professors required each student to buy 10 notebooks, regardless of the price.

C. Energy drinks became increasingly popular on college campuses between 2010 and 2012 due to significant improvements in flavor.

D. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.

Question

Kingston

Business

10 July, 11:58

Calculating inflation using a simple price index

Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply.

A. A new mobile device for personal computing became available for purchase.

B. Professors required each student to buy 10 notebooks, regardless of the price.

C. Energy drinks became increasingly popular on college campuses between 2010 and 2012 due to significant improvements in flavor.

D. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.

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Answers (1)

Know the Answer?

Brogan Humphrey · Answer 1

A. A new mobile device for personal computing became available for purchase.

C. Energy drinks became increasingly popular on college campuses between 2010 and 2012 due to significant improvements in flavor.

D. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.

Explanation:

A general increase in the price of commodities is known as inflation. the change in inflation is calculated using price index.

The statement that ilustrate why price indexes such as the CSPI might overstate inflation in the cost of going to collage are:

a new mobile device for personal computing became available for purchase.

as the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculator in their cell phones or in their computers.

energy drinks became increasingly popular on collage between 2010 and 2012 due to significant improvements in flavour.