If the percentage change in quantity demanded is greater than the percentage change in price, we would say that over this range, demand is:

Suppose the Bureau of Labor Statistics uses Ballpark Franks as the hot dogs used when calculating the consumer price index. During 2012, Oscar Mayer aggressively reduces prices

Consumers respond by purchasing more Oscar Mayer and less Ballpark Franks. The 2012 CPI is likely to A) understate the average prices paid by consumers. B) overstate the average prices paid by businesses. C) overstate the average prices paid by consumers. D) understate the average prices paid by businesses. E) neither understate nor overstate the average prices because some consumers will still buy Ballpark Franks.

Which would you rather have? a) $1,000, 5 years from now at 6% interest or b) $1,000, 3 years from now if the interest rate is 12%.

What will be an ideal response?