Answer:changes in the CPI overstates the rate of inflation
Explanation:
In constructing the CPI( Consumer Proce Index) there is an assumption that consumers purchase the same quantity each month in each period and in fact, consumers are likely to buy less of products that increase more in price and switch to that reduces in price all this falls back to consumer RATIONALITY (consumers want to pay less for more and get the best out of each $ spent amd switch to substitute product when price of a similar product is hicked)
