Which is likely to have the larger effect on the CPI, a 2 percent increase in food or a 3 percent increase in diamond rings?

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06-09-2016
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Which is likely to have the larger effect on the CPI, a 2 percent increase in food or a 3 percent increase in diamond rings?

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angelinaalaya angelinaalaya · Answer 1 · 2016-09-06T20:15:11+02:00

angelinaalaya angelinaalaya

06-09-2016

The 2 percent increase in the price of food will increase the CPI by more because theportion of the market basket consisting of food is much larger than the portion consisting of diamondrings

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