Ideas in this flowchart

• Assessing pricing policies for wireless headphones
• The manufacturer is questioning whether its pricing reflects market conditions.
• Observed inflation and headphone-price pattern
• The CPI increased by an average of 3 percent per year over five years.
• Wireless headphone prices increased by an average of 8 percent per year during the first three years.
• Wireless headphone prices increased by an average of 2 percent per year during the next two years.
• Headphone prices rose faster than the CPI initially and slower than the CPI later.
• Changes in demand may have influenced the headphone price pattern.
• Changes in supply and production conditions may have influenced the headphone price pattern.
• Other market factors may also have influenced prices beyond general inflation.
• The price comparison alone cannot determine the exact effects of demand, supply, and other market factors.