Consider Table 11-3 but suppose that the market basket is composed of 100 oranges, 50 grapefruit, and

Question:

Consider Table 11-3 but suppose that the market basket is composed of 100 oranges, 50 grapefruit, and 200 lemons. How does this change the pre - frost and post - frost price indexes? Explain. Generalize your explanation to how the construction of the market basket affects the price index.

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