The substitution by consumers of one good for another because of relative price changes:
A. is not captured by the CPI and causes the CPI to overestimate the cost-of-living changes.
B. is captured by the CPI and causes the CPI to overestimate the cost-of-living changes.
C. is not captured by the CPI and causes the CPI to underestimate the cost-of-living changes.
D. is captured by the CPI and causes the CPI to underestimate the cost-of-living changes.
Answer: A
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