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To: Jacob Snyder who wrote (111)	1/20/2002 11:21:24 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 445

Jacob - ...Your premise is that nothing ever gets any better, and that therefore improvements should be ignored. I see steadily improving products everywhere. If you go back and read my post more carefully, it should be clear that I said nothing of the kind. ...On the other hand, assume that the new ability is used to deposit visible graphite traces on underwater surfaces. In this case we have a new use, and a new and different product that provides it. In this case we may well be better off for the same expenditure level, but we have a different product, as judged by the consumer, not a lower priced version of the same one. If the new version of the product serves the same actual use as the previous one, then the actual market price for the new product can simply be substituted for the old price in the determination of the index. If the new version of the product serves an expanded actual use as compared to the previous one, then it must be considered as a new product, just as any brand new product would be. It is then a candidate for inclusion in a new basket of indexed goods, but it cannot simply have its price discounted and have that result fed into the index. Regards, Don