Question

Explain why or why not the Consumer Price Index includes changes in purchases that consumers make when the prices of goods and services change.

Answer 1

Answer: Consumer price index includes changes in purchases that consumer makes.

A Consumer Price Index estimates changes in the value dimension of market container of purchaser merchandise and ventures bought by family units. The CPI is a measurable gauge developed utilizing the costs of an example of delegate things whose costs are gathered occasionally. Sub-files and sub-sub-files are processed for various classes and sub-classifications of merchandise and enterprises, being joined to create the general record with loads mirroring their offers in the aggregate of the shopper consumptions secured by the file.