The consumer price index is a measure of
A)the average of the prices paid by urban consumers for a fixed basket of consumer goods and services.
B)the average of the prices paid by all consumers for a fixed basket of consumer goods and services.
C)the lowest prices paid by urban consumers for a fixed basket of consumer goods and services.
D)the consumer prices paid by average households for a fixed basket of goods and services.
E)the lowest prices paid by all consumers for a fixed basket of consumer goods and services.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the average change over time in the prices paid by urban consumers for a fixed basket of goods and services. It is used as an indicator of inflation and as a tool for adjusting prices and wages for inflation.

The Consumer Price Index Is a Measure of