As the price of a good rises,the consumer will experience
A)a desire to consume a different bundle.
B)a decrease in utility.
C)a southwesterly movement on the indifference map.
D)All of the above.

Question

Quizplus · Accepted Answer

All the options correctly describe the effects of a price increase on a consumer's behavior and utility. A price increase can lead to a desire for a different bundle of goods (substitution effect), a decrease in overall utility because the consumer can afford less, and a movement to a lower indifference curve on an indifference map, indicating lower overall satisfaction.

As the Price of a Good Rises,the Consumer Will Experience