When the Price of Gasoline Rises, Some Consumers Begin Riding

question 291

Multiple Choice

When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus 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.
• E)new product bias.

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Definitions:

Employment

The condition of having paid work or the number of people currently hired to perform tasks in various sectors.

Point H

Similar to Point P, Point H likely refers to a specific position on a graph, chart, or mathematical diagram, indicating a particular data point or condition.

Scarcity

A fundamental economic problem of having seemingly limitless human wants in a world of limited resources.

Choices

Decisions made by individuals or organizations among two or more alternatives.