The Consumer Price Index Is Subject to Substitution Bias Because

question 194

Multiple Choice

The consumer price index is subject to substitution bias because

• A)some pairs of goods are complements rather than substitutes.
• B)some goods are inferior rather than normal.
• C)the law of demand applies to most,if not all,goods.
• D)the index does not take into account the likelihood that consumers substitute newly-introduced goods for more-established goods.

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Definitions:

Learned Behaviors

Learned behaviors are actions or reactions that organisms acquire through experience, often involving memory and skills developed from previous activities or teachings.

Innate Behaviors

Behaviors that are genetically coded and present at birth, not learned through experience, such as reflex actions in infants.

Inherited Response

A reaction or behavior that is genetically passed down from one generation to the next, often instinctual in nature.

Sucking Response

An innate reflex in infants, triggering them to instinctively suck anything that touches the roof of their mouth.