For some racquet sports,there have been increases in the size of the racquets;also,the methods and materials used for making racquets have improved.To which problem in the construction of the CPI is this situation most relevant?
A)substitution bias
B)introduction of new goods
C)unmeasured quality change
D)income bias

Question

Quizplus · Accepted Answer

The situation described in the question is most relevant to the problem of unmeasured quality change in the construction of the CPI. This is because the improvements in racquet materials and size lead to a change in the quality of the product, which may not be fully captured by the CPI. As a result, the CPI may overstate inflation if it does not adjust appropriately for these quality changes.

For Some Racquet Sports,there Have Been Increases in the Size