An example of the quality change bias, and not a new goods bias, in the calculation of the CPI is a price increase in

Question

Quizplus · Accepted Answer

The price increase between a 2011 GPS unit and a 2008 GPS unit is an example of quality change bias because the price increase is solely due to the improved quality of the newer GPS unit, not due to the introduction of a new good. The other options may involve a new goods bias (B, D, and E) or are not related to quality change bias (A).

An Example of the Quality Change Bias, and Not a New