-In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ________ of the good and moves to a ________ indifference curve.
A) less; lower
B) less; higher
C) more; lower
D) more; higher

Question

-In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ________ of the good and moves to a ________ indifference curve.
A) less; lower 
B) less; higher 
C) more; lower 
D) more; higher

Quizplus · Accepted Answer

When the price of a good increases, the consumer typically purchases less of that good due to the substitution and income effects, and moves to a lower indifference curve because their overall utility decreases with the higher price.

-In an Indifference Curve/budget Line Diagram, Generally When the Price