The Consumer Price Index(CPI) is a statistic that measures changes in prices of goods and services purchased by consumers. It is based on a "basked of goods and services" divided into seven categories such as housing, food, and transportation with each category weighted according to its relative impact on a typical budget. Although the CPI is a useful measure of inflation, consumers themselves almost always imagine that prices are rising faster than this statistical measure.
Which of the following would help to explain the phenomenon described above?
A) the typical consumer purchases large ticket items such as a house or a car so infrequently that even given a low rate of inflation, the price of the new purchase will be noticeably higher than that of the previous one
B) in recent years, advances in technology have caused the price of electronics such as computers and stereo equipment to decline even as new products are introduced that have more extensive capabilities
C) because of long-term pressures in the health-care sector such as the push for higher wages for the lowest paid health-care workers, the cost of medical care has risen faster than the CPI
D) the CPI is compiled by the Bureau of Labor Statistics and is intended primarily as a measure of the effect of rising prices on a typical urban family
E) the prices paid for commodities such as gasoline that depend upon international market conditions are usually more volatile than those determined largely by domestic factors and tend to rise and fall sharply in the short run