When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding...

 

Transcribed Image Text:

When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. Since 1999 the CPI formula reduces the impact of the gas price increase for these changes in consumer behavior. This addresses what is known as substitution bias. discrimination bias. increased quality bias. discount outlet bias. When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. Since 1999 the CPI formula reduces the impact of the gas price increase for these changes in consumer behavior. This addresses what is known as substitution bias. discrimination bias. increased quality bias. discount outlet bias.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The ... View the full answer