Question

06 Question S points) a See page 249 Please read the article below, and use the information in the article to answer this question. You Want the CPI? Or the DPI? What Consumer Prices Look Like Sliced by Peter Coy Ever since Adobe Systems launched a digital alternative to the government's Consumer Price Index interesting findings have been popping up. The latest monthly version, released today, finds that sales of expensive televisions plunged in recent months while sales of expensive computers held up relatively well.Adobe also finds that prices of sporting goods plunged right around the time that Sports Authority and the smaller Sport Chalet chain were staging big going-out-of-business sales That's information you can't get from the Bureau of Labor Statistics Consumer Price Index. The government doesn't measure sales volumes, so It can tell you how much a high-end TV costs but not how many of them were sold. Adobe collects sales volumes from its Adobe Marketing Cloud, which sellers of consumer products use to get insight into their customers. The CPI also misses price changes, if they're limited to one seller. ike Sports Authority,.since the CPI gives equal weight to prices of all retailers no matter how much or little of something they sell. (Adobe won't confirm that Sports Authority is a customer, but the big drop in the index's measure of sporting goods prices after Soorts Authority fled for bankruptcy court protection sugzests it is) Adobe found that sales of TVs costing $2.000 or more fell 26 percent in the year through May 2016. Sales of TVs costing under $1.000 fell around 14 percent. The pattern was the opposite in computers. Salès fell45 percent over the year for models under $300, and just á percent for computers costing over $1.600, according to Adobe's data. SOF 20 QUESTIONS COMPLETED k 06/29 2 UBMIT ANS

Answer 1

A. Consumer price index

According to passage CPI is stable over the time. Because it's calculation do does not depend upon a single item or seller. It is composite index of market and remains stable over time