Figure 29-2 
What is the process occurring at point 3 in the accompanying figure?
Definitions:
Price Increase
A rise in the cost of goods or services in the market.
Traditional Theory
This term encompasses theories that rely on established norms and practices, often contrasting with modern or contemporary theories.
Budget Line
All combinations of goods for which the total amount of money spent is equal to income.
Rational Producers
Producers who aim to maximize their profits or benefits by making decisions based on logical analysis and available information.
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