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

A price-consumption curve shows the various affordable combinations of two goods that a consumer can purchase at different prices of one good, while keeping the other good's price constant, and still maintain the same level of utility. Therefore, this option is the most appropriate answer as it describes the relationship between changes in prices and consumption patterns. The other options, such as an individual demand curve, an income-consumption curve, and a budget line, do not specifically capture changes in consumption patterns due to price changes of a specific good.

The Curve That Shows How the Best Affordable Consumption Bundle