The "New Product Bias" in the Consumer Price Index Refers

question 2

Multiple Choice

The "new product bias" in the consumer price index refers to the idea that

• A)consumers switch to new goods when the prices of old goods increase,and the CPI overestimates the cost to consumers.
• B)consumers switch to old goods when the prices of new goods increase,and the CPI underestimates the cost to consumers.
• C)consumers prefer new goods,even if they are worse in quality than old goods,and this causes the CPI to underestimate the cost to consumers.
• D)new products' prices often decrease after their initial introduction,and the CPI is adjusted infrequently and overestimates the cost to consumers.

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Definitions:

Crisis Intervention

A method of short-term support with the aim of stabilizing individuals in acute psychological distress and preventing further deterioration of their mental health.

Duration

The length of time that something lasts or continues.

Youthful Appearance

The look or characteristics of being young, often involving traits like smooth skin, full hair, and vibrant energy.

Maturational Crisis

A crisis that occurs as a result of reaching a new developmental stage in life, often requiring an individual to acquire new coping mechanisms to adapt effectively.