Analyzing Price vs. Quality in a Service
A local gym increases its monthly membership fee from $50 to $60. During the same period, the gym installs new, state-of-the-art equipment and extends its weekend operating hours. From the perspective of an economist measuring changes in the cost of living, explain why simply recording a 20% price increase for this service would be misleading. What two distinct factors must be considered to accurately assess the change?
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