What is a customer basket?
Q: What is a customer basket?
A: A customer basket, also known as a market basket or commodity basket, is a set of different amounts of goods and services that a typical consumer would need.
Q: What are the two main uses for commodity baskets?
A: The two main uses for commodity baskets are to compare the price level of two economies and to show how prices change over time.
Q: What is consumer price index?
A: Consumer price index is the amount of money needed to buy everything in the basket over time.
Q: How can commodity baskets be used to compare two economies?
A: Commodity baskets can be used to compare two economies by looking at the different amounts of goods and services they contain and their respective prices.
Q: How do commodity baskets show how prices change over time?
A: Commodity baskets show how prices change over time by comparing the amount of money needed to buy everything in the basket at different points in time.
Q: Are market baskets and commodity baskets interchangeable terms?
A: Yes, market baskets and commodity baskets are interchangeable terms that refer to sets of different amounts of goods and services that a typical consumer would need.
