All of the following are limitations of the consumer price index except
A) its market basket fails to keep pace with the development of better products
B) it ignores the discounting of prices by merchants
C) it does not keep pace with changes in people's buying patterns
D) it applies to only consumers of 21 years of age or over

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) applies to all urban consumers regardless of their age, not just those over 21 years of age. This makes choice D incorrect as a limitation of the CPI. The other options (A, B, C) are indeed limitations or criticisms often cited regarding the CPI.

All of the Following Are Limitations of the Consumer Price