Question

Which of the following, if true, would illustrate why price indexes such as the cspi might overstate inflation in the cost of going to college? check all that apply.
A. As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.
B. Professors required each student to buy 15 notebooks, regardless of the price.
C. Energy drinks became increasingly popular on college campuses between 2014 and 2016 due to significant improvements in flavor, but this quality change is hard to measure.
D. A new mobile device for personal computing became available for purchase.

Answer 1

A, B, and D will increase the inflation cost of going to college.

Further Explanation:

Inflation:

Inflation refers to the decrease in the purchasing power of the money. The inflation results in an increase in the price of the goods. Now, fewer goods can be bought from a given level of money. Therefore, inflation is a situation where the price of the goods increases and the purchasing power of the money decreases. The CPI calculates the average change in the price of the goods.

Selection of the alternatives that would increase the inflation cost of going to college:

The alternatives that would increase the cost of attaining the college will increase the inflation cost of going to college. The following alternatives will increase the cost of going to college:

A.

As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers: It will increase the cost of going to college because of the price of the calculator rose.  

B.

Energy drinks became increasingly popular on college campuses between 2014 and 2016 due to significant improvements in flavor, but this quality change is hard to measure: The increase in the popularity of the energy drink will increase the demand and consumption of the energy drink. It will increase the cost of going to college.

D.

A new mobile device for personal computing became available for purchase: The availability of the computing application will increase the cost of going to college because the students have to pay for the application.

Thus, A, B, and D will increase the inflation cost of going to college.

Learn More:

1. Learn more about the product leadership

brainly.com/question/6610513

2. Learn more about the demand and supply

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3. Learn more about the supply

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Answer Details:

Grade: Senior school

Chapter: Inflation

Subject: Economics  

Keywords: true, illustrate, price, indexes, cspi, overstate, inflation, cost, going, college, check, that, apply,

price, calculators, rose, fewer, students, decided, buy them, opting, instead, free, cell phones, computers, Professors, student, notebooks.

Answer 2

The best answer is A) As the price of calculators rose, fewer students decided to buy them, opting instead to use the free calculators in their cell phones or on their computers.

If calculators are included in the basket of goods used to calculate the CSPI, an increase in calculator prices may overstate the effect on the CSPI, since students aren't purchasing this item as frequently as they used to.