If There Is an Increase in the Price of Apples

question 32

Multiple Choice

If there is an increase in the price of apples, which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from

• A)consumer preference bias.
• B)substitution bias.
• C)base year bias.
• D)bias due to unmeasured quality change.
• E)bias due to the introduction of new goods.

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Definitions:

Population Growth

An increase in the number of individuals in a population over a specific period of time.

Rising Incomes

An increase in the monetary earnings of individuals or households over time, typically contributing to improved living standards.

Population Growth

The increase in the number of individuals in a population, determined by factors such as birth rates, death rates, and migration patterns.

Economic Development

The method through which a nation, region, or local community enhances its economic prosperity and standard of living to meet specific aims and objectives.