The CPI may be an inaccurate measure of changes in the price level because
A)consumers rarely switch to less expensive products when the price of a particular good increases.
B)it is a changing quantity index.
C)consumers can substitute higher priced goods when the price of a particular good increases.
D)the market basket of goods was determined arbitrarily by the government without conducting surveys of spending patterns.

Question

Quizplus · Accepted Answer

Consumers can substitute higher priced goods when the price of a particular good increases.

The CPI May Be an Inaccurate Measure of Changes in the Price