Question:

8. The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket. ...

[Rest of the question in the picture BELOW]

*** Please explain and show all work. Thank you very much and will rate! :)

The substitution bias in the consumer price index refers to the idea that consumers the quantity of products they buy in response to price, and the CPI does not reflect this and the cost of the market basket. O change; over-estimates O do not change; under-estimates O change; under-estimates O do not change; over-estimates