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

Multiple Choice

With respect to the consumer price index,which of the following serves 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) falls from $0.90 to $0.72 while the price of a loaf of bread falls from $2.00 to $1.60.
C) remains constant,as does the price of a loaf of bread.
D) None of the above serves as an example of how the substitution bias arises.