No. I am talking about price. Price measures what you are giving up to receive value.
> price is definitely set before the transaction takes place.
No. You're likely thinking of an offer. Offers are made before the transaction takes place. Offers are spoken of in terms of the price the seller (or buyer) hopes to see, but it is not yet set. Negotiation can still occur at this stage, as can rejection.
Vendors with a lot of traffic are able to gain a pretty good handle on what consumers are willing to pay, so often, for all intents and purposes, the first offer and price end up being equivalent. Perhaps that is what you are thinking of?
Regardless, CPI looks at what consumers are actually buying. No matter how you want to define price in some sort of vacuum, price with respect to CPI can only increase if the buyers are willing.
No. I am talking about price. Price measures what you are giving up to receive value.
> price is definitely set before the transaction takes place.
No. You're likely thinking of an offer. Offers are made before the transaction takes place. Offers are spoken of in terms of the price the seller (or buyer) hopes to see, but it is not yet set. Negotiation can still occur at this stage, as can rejection.
Vendors with a lot of traffic are able to gain a pretty good handle on what consumers are willing to pay, so often, for all intents and purposes, the first offer and price end up being equivalent. Perhaps that is what you are thinking of?
Regardless, CPI looks at what consumers are actually buying. No matter how you want to define price in some sort of vacuum, price with respect to CPI can only increase if the buyers are willing.