Question

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.

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 on their cell phones or their computers.

Step-by-step explanation:

Alterations in market prices are calculated using a "price index" scale. This is the most helpful gadget for estimating the adjustment in the value level. In many nations, value records are utilized to quantify swelling, each concentrating on the costs of a gathering of merchandise and ventures critical to a specific segment of the economy.

The "price index" is a proportion of value changes using a rating scale. A value list can be founded on the price of solitary thing or a chose gathering of things, called a market crate.