As a Consumer Moves Along an Indifference Curve

question 125

Multiple Choice

As a consumer moves along an indifference curve:

• A) prices are held constant, but the consumer's budget changes.
• B) the consumer's budget is held constant, but prices change.
• C) prices and the consumer's budget are held constant, but total utility changes.
• D) total utility is held constant, but prices, quantities, and the consumer's budget may change.

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Definitions:

Behavioral Perspective

An approach in psychology focusing on observable behaviors and the ways in which learning occurs through interactions with the environment.

Humanistic Potential

The inherent capacity for personal growth and achieving self-fulfillment, often emphasized in humanistic psychology.

Social-cognitive

Pertaining to the understanding of social interactions and the processing of social information through learning, observation, and cognition.

Cognitive Ability

The capacity to perform higher mental processes of reasoning, remembering, understanding, and problem solving.