Substitution Bias

question 31

Multiple Choice

Substitution bias

• A) is one factor that causes the Consumer Price Index to underestimate the inflation rate
• B) is caused by the poor quality of many products
• C) is one of the primary causes of inflation
• D) involves consumer behavior that helps explain why the Consumer Price Index overestimates the inflation rate
• E) suggests most economists substitute other price indices for the flawed Consumer Price Index

---

Definitions:

Buying Center Culture

The collective norms, values, and practices of the group of individuals within an organization who participate in the purchasing decision process.

Buying Center

A group of individuals within an organization who are responsible for making purchasing decisions, often comprising members from different departments and roles.

Influencer

The buying center participant whose views influence other members of the buying center in making the final decision.

Macintosh Computers

A line of personal computers designed, developed, and marketed by Apple Inc., noted for its innovative user interface.