Question

Select the best answer.

Which retailer would be seen as part of the CPI bias known as the outlet substitution effect?

The Container Store® (specialty chain that sells storage products)

Kroger (groceries)

Dollar Tree® (discount variety store)

Answer 1

The retailer that would be seen as part of the CPI bias known as the outlet substitution effect is **Dollar Tree® (discount variety store)**. The outlet substitution effect refers to consumers shifting their purchasing behavior toward lower-priced outlets (like discount stores) when prices rise. Dollar Tree represents a budget-friendly option, making it relevant in the context of outlet substitution.