The curve that shows how the best affordable consumption bundle changes as the price of a good changes (holding the consumer's income,preferences and all other prices fixed)is called:
A) a price-consumption curve.
B) an individual demand curve.
C) an income-consumption curve.
D) a budget line.

Question

Quizplus · Accepted Answer

The price-consumption curve illustrates the relationship between the price of a good and the quantity that a consumer is willing and able to purchase at each price, holding all other variables constant. As the price of a good changes, the curve shows the corresponding changes in the quantity demanded, ultimately resulting in a new best affordable consumption bundle. The other options, such as an individual demand curve, an income-consumption curve, and a budget line, are related concepts but do not specifically refer to the relationship between changes in price and quantity demanded.

The Curve That Shows How the Best Affordable Consumption Bundle