Suppose That Dairy Products Have Risen in Price Less Than

question 88

Multiple Choice

Suppose that dairy products have risen in price less than prices in general over the past several years. Which problem in the construction of the CPI is this price increase most relevant to?

• A) substitution bias
• B) introduction of new goods
• C) unmeasured quality change
• D) income bias

---

Definitions:

Behavioural Responses

Reactions exhibited by individuals in response to external or internal stimuli.

Stress

A physical or psychological response to internal or external pressures, challenges, or threats, often characterized by feelings of tension, anxiousness, or overwhelm.

Pressure

A psychological state characterized by the perception of demands or stressors that are viewed as taxing or exceeding one's resources or abilities.

Expectation

A belief about what will happen in the future, often based on experience or hypothetical scenarios.