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Figure: The Optimal Consumption Bundle
-(Figure: The Optimal Consumption Bundle) Look at the figure The Optimal Consumption Bundle. If the price of restaurant meals _____, then the optimal consumption bundle will be on _____ indifference curve.
A) increases; a higher
B) decreases; a higher
C) decreases; a lower
D) increases; the same

Question

Use the following to answer questions:
Figure: The Optimal Consumption Bundle 
-(Figure: The Optimal Consumption Bundle) Look at the figure The Optimal Consumption Bundle. If the price of restaurant meals _____, then the optimal consumption bundle will be on _____ indifference curve.
A) increases; a higher 
B) decreases; a higher 
C) decreases; a lower 
D) increases; the same

Quizplus · Accepted Answer

If the price of restaurant meals decreases, the consumer can afford more meals or other goods, leading to a higher utility level and thus a higher indifference curve.

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