Suppose the Price of Banana Rises Over Time and Consumers

question 109

Multiple Choice

Suppose the price of banana rises over time and consumers respond by buying fewer bananas. This situation contributes to which bias in the consumer price index?

• A) Substitution bias.
• B) Transportation bias.
• C) Quality bias.
• D) Indexing bias.

---

Definitions:

Cerebral Palsy

A group of permanent movement disorders that appear in early childhood, caused by abnormal development or damage to the parts of the brain that control movement, balance, and posture.

Abbreviation

An abbreviated variation of a word or phrase.

Rapid Eye Movement

A phase of sleep characterized by the rapid movement of the eyes, dreaming, and increased brain activity.

Abbreviation

The process of shortening a word or group of words to simplify expressions or terms.