When the Price of a Good Increases, All Else Held

question 66

Multiple Choice

When the price of a good increases, all else held equal, which of the following does not occur?

• A)The slope of the budget line changes.
• B)The consumer's indifference curves shift.
• C)Utility decreases.
• D)Quantity demanded decreases.
• E)The budget line shifts inward along that good's axis.

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Definitions:

Companies

Business entities formed to engage in commercial, industrial, or professional activities, either for profit or non-profit purposes.

Investment in Bonds

The purchase of bonds with the aim to earn interest income over time and potentially benefit from appreciation in bond value.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position by detailing its assets, liabilities, and equity at a specific point in time.

Lower of Cost

A principle that dictates inventory and other assets are recorded at the lesser of their historical cost or market value.