When the price of broccoli increase relative to cauliflower, people who buy fresh vegetables respond by buying more cauliflower and fewer broccoli. As a result, the CPI has
A) a quality change bias.
B) a new price bias.
C) a commodity substitution bias.
D) an outlet substitution bias.
E) a new goods bias.
C
Economics
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A decrease in supply shifts the supply curve to the left
a. True b. False Indicate whether the statement is true or false
Economics
Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A. excess supply will lead the price of broccoli to fall. B. excess demand will lead the price of broccoli to fall. C. excess demand will lead the price of broccoli to rise. D. excess supply will lead the price of broccoli to rise.
Economics