When the Price of Petrol Rises, Some Consumers Begin Riding

question 54

Multiple Choice

When the price of petrol rises, some consumers begin riding their bikes more frequently or taking public transport instead of driving their cars. The fact that the CPI does not fully account for such changes in consumer behaviour is called:

• A)outlet bias.
• B)increase in quality bias.
• C)substitution bias.
• D)discrimination bias.

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Definitions:

Evidentiary Procedure

The rules and methods by which evidence is admitted and evaluated in legal proceedings to establish the truth of facts.

Bargaining Power

The relative capacity of one party in a negotiation to exert influence over another party to achieve desired negotiation outcomes.

Arbitrator

A neutral third party who resolves disputes between two parties, especially in labor relations, by making binding decisions.

Concession Bargaining

A negotiation process where the union agrees to reduce benefits or alter conditions in exchange for something from the employer, often during economic difficulties.