St. Bonaventure University Alumni notes

1. With respect to the consumer price index, the substitution bias arises because (a) prices of goods and services do not change in the same proportion from year to year. (b) consumers are slow to adjust their buying patterns from year to year in response to price changes. (c) consumers are eager to buy new products as they are introduced, despite their lack of full infor- mation about the quality of those products until they buy and use them. (d) All of the above are correct. 2. If the re...

1. With respect to the consumer price index, the substitution bias arises because (a) prices of goods and services do not change in the same proportion from year to year. (b) consumers are slow to adjust their buying patterns from year to year in response to price changes. (c) consumers are eager to buy new products as they are introduced, despite their lack of full infor- mation about the quality of those products until they buy and use them. (d) All of the above are correct. 2. If the re...