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1.Suppose that mobile phones are part of the market basket used to compute the CPI. Then suppose that the quality of mobile phones improves while

1.Suppose that mobile phones are part of the market basket used to compute the CPI. Then suppose that the quality of mobile phones improves while the price of mobile phones stays the same. If Statistics New Zealand precisely adjusts the CPI for the improvement in quality, then, ceteris paribus:

A.mobile phones will no longer be included in the market basket

B.the CPI will rise

C.the CPI will fall

D.the CPI will stay the same.

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