A widely acknowledged problem with using the consumer price index as a measure of the cost of living is that it fails to account for the introduction of new goods.
More about consumer price index and its problem-
- A more accurate indicator of a nation's standard of living than per capita GDP is the consumer price index or CPI.
- It is based on the total cost of a fixed basket of goods and services purchased by an average customer in comparison to the cost of the same basket in a base year.
- The CPI can get a precise assessment of the cost of living by including a wide range of thousands of items and services with the set basket.
- It's crucial to keep in mind that the CPI is an index number or a percentage change from the base year rather than a monetary value like the GDP.
- Because CPI is based on a fixed basket of products, the CPI does not provide an entirely accurate measure of the cost of living, despite being a convenient approach to calculate the cost of living and the relative price level over time.
- The bias against substitution, the introduction of new products, and quality variations are three issues with the CPI that should be mentioned.
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Answer:
The correct answer is letter "C": consultative selling approach.
Explanation:
The consultative selling approach is a method of sale that requires vendor-customer engagement to provide consumer personalized experience by pointing out solutions out of open questions according to the customers' needs. Normally, vendors do not follow sales speeches to attract the consumers' attention but they improvise identifying the potential reason why customers would purchase a product.
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The used car will have higher insurance premiums because there is a higher chance that it will malfunction and that they will have to pay for your expenses. A new car is cheaper when it comes to premiums because it is expected to last and the insurance companies are safer in this regard.
