When a new good enters the market,the CPI
A) accounts for the change in its price immediately.
B) fails to account for the impact on living standards from the good's existence.
C) never accounts for how the good changes in price.
D) accounts for the decline in the price but not for any increases.
E) accounts for the good only if sold in populous eastern states.

Question

Quizplus · Accepted Answer

The CPI only accounts for changes in prices of existing goods in the market and does not take into account the impact on living standards from the existence of new goods.

When a New Good Enters the Market,the CPI