What Are Three Strengths And Three Weaknesses Of The Consumer Price Index?

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Ellie Hoe answered
The strengths of consumer price index include easier way of calculation, easier interpretation, easier comparison over the years and reliable measure for calculating the price index for the economy.  The weaknesses of consumer price index include its non-inclusion of substitution effect. It fails to account for the fact that in certain times, people switch towards low price products, it also doesn't take into other baskets as it is just based on single basket of goods.

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