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

Question

Quizplus · Accepted Answer

This is a clear example of a commodity substitution bias, as consumers are substituting one vegetable (broccoli) for another (cauliflower) due to a relative price change. This bias refers to the fact that the CPI may not accurately reflect changes in consumer behavior when they shift their purchases to similar, but cheaper, goods.

When the Price of Broccoli Increase Relative to Cauliflower,people Who