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.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: In the calculation of the CPI,tea is
Q2: If 2010 is the base year,then the
Q4: In a particular economy,the price index was
Q6: The problems with using the consumer price
Q7: Which of the following agencies calculates the
Q8: Which of the following changes in the
Q9: Which of the following is the correct
Q10: For the purpose of calculating the consumer
Q11: If the quality of a good improves
Q30: Suppose the price of a quart of