Multiple Choice
If the price of a product increases, then
A) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
B) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
C) the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
D) the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.
Correct Answer:
Verified
Correct Answer:
Verified
Q175: When Sally increases the consumption of pizza
Q176: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Use the above
Q177: If the marginal utility of each good
Q178: One piece of evidence that possibly supports
Q179: The quantity of good M is measured
Q181: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q182: If two units of a good provide
Q183: The state of consumer optimum is reached
Q184: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q185: If a consumer is at an optimum,