The commodity substitution bias is that

Question

Quizplus · Accepted Answer

The commodity substitution bias refers to the tendency of consumers to shift their consumption patterns towards goods that have become relatively cheaper and away from goods that have become relatively more expensive. This is captured by the standard economic principle of demand, which states that consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls. Therefore, option D is the correct answer. The other options are unrelated to the commodity substitution bias.

The Commodity Substitution Bias Is That