Commodity Substitution Bias in the CPI Refers to the Fact

Multiple Choice

Commodity substitution bias in the CPI refers to the fact that the CPI

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