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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