Increases in product prices shift the consumer's
A)budget line to the right.
B)budget line to the left.
C)indifference curves to the left.
D)indifference curves to the right.

Question

Quizplus · Accepted Answer

Increases in product prices reduce the quantity of goods a consumer can afford with a given budget, effectively shifting the budget line to the left. This represents a decrease in purchasing power, not a change in preferences, which would be reflected by a shift in indifference curves.

Increases in Product Prices Shift the Consumer's