When the price of a good increases, all else held equal, which of the following does not occur?
A)The slope of the budget line changes.
B)The consumer's indifference curves shift.
C)Utility decreases.
D)Quantity demanded decreases.
E)The budget line shifts inward along that good's axis.

Question

Quizplus · Accepted Answer

The increase in price causes a movement along the budget line, but does not shift the indifference curves. Therefore, B is the correct choice as the answer.

When the Price of a Good Increases, All Else Held