The CPI May Be an Inaccurate Measure of Changes in the Price

Multiple Choice

The CPI may be an inaccurate measure of changes in the price level because

A) consumers rarely switch to less expensive products when the price of a particular good increases.
B) it is a changing quantity index.
C) consumers can substitute higher priced goods when the price of a particular good increases.
D) the market basket of goods was determined arbitrarily by the government without conducting surveys of spending patterns.