Question
The substitution bias in the consumer price index refers to the idea that consumers ______ the quantity of products they buy in response to price,
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.
A. change; over-estimates
B. do not change; under-estimates
C. do not change; over-estimates
D. change; under-estimates
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Essentials of Economics
Authors: Bradley Schiller, Karen Gebhardt
10th edition
125923570X, 978-1259235702
