As the price of a good falls, the consumer will experience
A)a desire to consume a different bundle.
B)an increase in utility.
C)an upward or rightward movement on the indifference map.
D)All of the above.

Question

Quizplus · Accepted Answer

When the price of a good falls, consumers are likely to adjust their consumption to a different bundle that gives them more utility, reflecting a desire to consume a different bundle and an increase in utility. This adjustment can be represented as a movement to a higher indifference curve on an indifference map, which is typically upward or rightward, indicating a higher level of satisfaction.

As the Price of a Good Falls, the Consumer Will