Substitution Bias in the CPI Refers to the Fact That

Multiple Choice

Substitution bias in the CPI refers to the fact that the CPI

A) takes no account of the substitution of goods by consumers when relative prices change.
B) substitutes relative prices for absolute prices of goods.
C) substitutes quality changes whenever they occur without taking account of the cost of the quality changes.
D) takes into account the substitution of goods by consumers when relative prices change.