GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. At which of the following overall rates of inflation would it be true that bowling balls became relatively cheaper?

John derives more utility from having $1,000 than from having $100. From this, we can conclude that John

A) is risk averse. B) is risk loving. C) is risk neutral. D) has a positive marginal utility of wealth.

Assume that CDs are a normal good and that the price of stereo equipment falls while the labor costs of producing CDs increase. What will happen in the market for CDs?

What will be an ideal response?