Suppose a product becomes widely used.How would this tend to be reflected in the consumer price index over time?

Question

Quizplus · Accepted Answer

If a widely used product becomes more expensive, it would tend to increase the overall consumer price level, leading to an overstatement of inflation in the long run. This is because the consumer price index is calculated as a weighted average of the prices of a basket of goods and services, and if the price of a widely used product increases, it can have a significant impact on the overall index.

Suppose a Product Becomes Widely Used