Since the government controls the maximum price pipelines can charge for transportation of natural gas, the pipelines going to the same destination usually compete by discounting rates below the legal maximum

The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?

A) country A B) country B C) country C D) country D

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

What will be an ideal response?