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

Question

Quizplus · Accepted Answer

Outlet bias occurs when consumers shift their spending towards discount stores or cheaper outlets as prices increase, which can affect the accuracy of measures like the Consumer Price Index (CPI) by not fully capturing such shifts in consumer behavior.

What Is Outlet Bias