Michelle bought word-processing software in 2009 for $75.Michelle's cousin,Barry,bought an upgrade of the same software in 2010 for $75.To which problem in the construction of the CPI is this situation most relevant?
A)substitution bias
B)unmeasured quality change
C)introduction of new goods
D)income bias

Question

Quizplus · Accepted Answer

This situation is most relevant to the problem of unmeasured quality change, as the software being purchased is an upgraded version of the same product. This means that the newer version likely has improvements in quality that are not accounted for in the CPI.

Michelle Bought Word-Processing Software in 2009 for $75