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With Respect to the Consumer Price Index,which of the Following

Question 5

Multiple Choice

With respect to the consumer price index,which of the following does not serve as an example of how the substitution bias arises? Between 2010 and 2011,the price of a pound of peanuts


A) rises from $0.80 to $1.00 while the price of a loaf of bread rises from $2.00 to $2.50.
B) rises from $1.00 to $1.30 while the price of a loaf of bread rises from $2.00 to $2.30.
C) remains constant,while the price of a loaf of bread rises from $2.00 to $2.30.
D) falls from $1.00 to $0.80 while the price of a loaf of bread falls from $2.00 to $1.80.

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