Question

Sakshi's expenditure on "education and communication" as a percentage of her total expendure is much higher
than the weightage given to "education and communication" in the basket prepared by the government for CPI
calculation. If the inflation in the "education and communication" category much higher than overall inflation,
then, for Sakshi,
A. CPI overstates inflation
B. CPI understates inflation
C. It cannot be concluded whether CPI overstates or understates inflation
D. Education and communication are not important.​

Answer 1

Answer:

b

Explanation:

CPI undaerstates inflation