Question

Which of the following situations illustrate the problem of unmeasured quality change in the construction of the CPI? Check all that apply. Increased personal computer purchases in response to a decline in their price More scoops of raisins in each package of Raisin Bran The invention of cell phones The introduction of air bags in cars Greater use of fuel-efficient cars after gasoline prices increase

Answer 1

Answer:

The introduction of air bags in cars

More scoops of raisins in each package of Raisin Bran

Explanation:

In the case when the quality of the prodcut would reduce from one year to the next year but the price would remains same so the dollar value would decline as the same amount would be charged but the quality would be worse in the other case the quality would rise so the price would also rised

Therefore the above represent the situations