_____ Is the Consumer's Perception About What He or She

question 12

Multiple Choice

_____ is the consumer's perception about what he or she knows relative to what others know.

• A) Normative influence
• B) The ideal state
• C) A subjective norm
• D) Confirmation bias
• E) Subjective knowledge

---

Definitions:

Substitution Bias

Substitution bias occurs in inflation measurement and refers to the tendency of consumers to change their purchasing habits away from goods that have increased in price to cheaper alternatives, which is not always fully captured by price indexes.

CPI

The Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Consumer Substitution

The tendency of consumers to switch from one good to another in response to changes in relative prices, keeping their level of satisfaction or utility constant.

New Good

A product that has been recently developed or introduced to the market, offering new benefits or replacing existing goods.