Which of the following is NOT a reason as to why the CPI may be biased?
A)The CPI deals with a fixed market basket and doesn't capture the savings households enjoy when they take advantage of sales.
B)The CPI does not pick up the increase in economic welfare caused by new products entering the marketplace.
C)The CPI does not adequately deal with changes in the quantity of products purchased over time.
D)The CPI does not adequately reflect that different consumers have different tastes.

Question

Quizplus · Accepted Answer

The CPI is designed to reflect the average change in prices paid by urban consumers for a fixed basket of goods and services, and it does not account for individual consumer preferences or tastes.

Which of the Following Is NOT a Reason as to Why