when measuring price levels in the economy such


When measuring price levels in the economy (such as when calculating the CPI index), why is a weighted average used?

Because we require giving greater emphasis to prices at which many transactions are made and less emphasis to the prices of relatively minor goods and services.

 

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: when measuring price levels in the economy such
Reference No:- TGS0328126

Expected delivery within 24 Hours