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

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This scenario describes the commodity substitution bias. This bias occurs when consumers shift their purchases from one good to another in response to price changes, leading to changes in the CPI that do not solely reflect changes in the cost of living. In this case, the relative price increase of broccoli causes consumers to substitute cauliflower, resulting in a change in the composition of the CPI basket.

When the Price of Broccoli Increase Relative to Cauliflower, People