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. The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memory cards, whereas those made in 2017 do not, but this quality change is hard to measure. A new, safe method of memory enhancement became available for purchase. Professors required each student to buy 10 textbooks, regardless of the price. As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.

Answer 1

Answer:

- The quality and design of calculators improved dramatically from 2017 to 2019.

- A new, safe method of memory enhancement became available for purchase.

- As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead of using the copies on reserve in the library.

Explanation:

Remember, regarding the prices for the textbooks the factors of demand applies that is why when prices increase, it might result in an overstating; which means inflation in the cost of going to college.

Also, just as improvements in the memory of calculators involves additional expenses, it results in inflation. Overall, all these circumstances can result in such inflation.