Author Question: When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding ... (Read 154 times)

meagbuch · **on:** Jun 29, 2018

When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in consumer behavior is called

A) increase in quality bias. B) outlet bias.
C) substitution bias. D) discrimination bias.

Question 2

If the marginal propensity to consume is 0.6, the marginal propensity to save is

A) 0.4. B) 0.6. C) 1. D) 1.5.