Answer to Question #90515 in Macroeconomics for Sung Eun Seok

Question

5. The commodity substitution bias reflects the point that
Select one:
A. consumers often substitute high-quality goods for low-quality goods.
B. prices of goods and services sold by some retailers are higher than the prices of the same
goods and services when sold by other retailers.
C. consumers decrease the quantity they buy of goods whose relative prices rise and increase the
quantity of goods whose relative price falls.
D. government expenditure is a good substitute for investment expenditure.

Answer 1

C. consumers decrease the quantity they buy of goods whose relative prices rise and increase the

quantity of goods whose relative price falls.