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24-01-2020
Business

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If you were to learn that Gatorade introduced new flavors in 2018, should that information affect your calculation of the inflation rate? If so, how?

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24-01-2020

Answer:

Yes

Gatorade's increased price will lower the rate of inflation as it increases well-being. The more flavors improve well-being, thereby rising the inflation rate in 2018 due to this quality improvement.

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