True or False: If you were to learn that Gatorade introduced new flavors in 2018, that would imply that the inflation rate you estimated is overstated.

If you were to learn that Gatorade introduced new flavors in 2018, that would imply that the inflation rate you estimated is overstated.

Is false

Explanation:

The increase of a product variety means that the consumer is acquiring the product and that the cost per dollar over a second product of the same is used with efficacy. Also, the CPI market is based on the basic basket prices. Therefore the inflation is already given or overstated. And the increase in the variety of products doesn't suggest inflation is overstated.

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