Question

The concept of a price index is that: Question 28 options: it is an index of how much housing prices have changed, because housing is the most important item in the consumption bundle. it is a measure of how the prices included in the typical basket of goods have changed over time, holding the items in the consumption bundle constant. it is a measure of how the items included in the typical basket of goods have changed over time; it also includes price changes over time. it is an index of how much gasoline prices have increased, because all prices follow the price of gasoline. it is a measure of how the items included in the typical basket of goods have changed over time, while holding price changes constant.

Answer 1

Answer:

Option B (It is a.............bundle constant) would be the correct choice.

Explanation:

• The index number representing the amount including its commodities prices community determines the level including its values of almost the same goods over the base time randomly selected and used to denote shifts throughout the price point through one time toward the next.
• A calculation of where and how prices have been rising over time in a standard basket of things, keeping the products steady throughout the consumption package. The price index maybe for something like gasoline, homes, etc.

Some other approaches offered aren't linked to the possibility specified. So, the obvious response above is the right one.