An example of the commodity substitution bias in the calculation of the CPI is a price increase in
A) turkey when the price of chicken doesn't rise.
B) a GPS unit versus a AAA map book.
C) a 2012 Toyota Camry versus a 2005 Honda Civic.
D) etexts versus used books bought through Craigslist.
E) new homes because people's incomes have increased.
Correct Answer:
Verified
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