What is outlet bias?
A)the tendency for households to spend more money over time
B)the tendency for households to spend their money at discount stores as prices rise
C)the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality
D)the tendency for consumers to purchase newer, more technologically advanced products even though they have higher prices
E)the tendency for households to substitute one good for another in response to price changes

Question

Quizplus · Accepted Answer

Outlet bias refers to the tendency for households to shift their spending to discount stores or outlets as prices rise, which can lead to an underestimation of the cost of living in measures like the Consumer Price Index (CPI).

What Is Outlet Bias