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; overestimates
B.
do not change; underestimates
C.
change; underestimates
D.
do not change; overestimates
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Consumer Behaviour
Authors: Evans, Martin Evans
2nd Edition
0470994657, 9780470994658
