In the CPI, goods and services are weighted according to
A)how long a market has existed for each good or service.
B)the extent to which each good or service is regarded by the government as a necessity.
C)how much consumers buy of each good or service.
D)the number of firms that produce and sell each good or service.

Question

Quizplus · Accepted Answer

In the Consumer Price Index (CPI), goods and services are weighted according to how much consumers buy of each good or service. This approach ensures that the index accurately reflects the spending patterns of the average consumer and the impact of price changes on the cost of living.

In the CPI, Goods and Services Are Weighted According to