What is the cost of living?

The cost of living varies between different areas of the country. If you earned $100,000 per year where you live now, and wanted to move. Select a city and state you’d like to move to. How much would you need in additional income for your cost of living to remain unchanged? Or, perhaps your cost of living will decrease! By how much? What might explain the different costs, and how might they influence your decision to move there?

Identify one reason why the CPI is an imperfect measure of the cost of living.

Explain briefly what the CPI measures and how it is constructed. Identify one reason why the CPI is an imperfect measure of the cost of living