Question: Using what you have learned from Question 1, explain the effect of each of the following events on how well a CPI based on a

Using what you have learned from Question 1, explain the effect of each of the following events on how well a CPI based on a market basket determined 10 years ago functions in measuring the change in prices today.

a. A typical family owns more cars than it would have a decade ago. Over that time, the average price of a car has increased more than the average prices of other goods.

b. Virtually no households had broadband Internet access a decade ago. Now, many households have it, and the price has regularly fallen each year.

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