If the Price of a Good Rises, Indifference Curve Analysis

question 204

Multiple Choice

If the price of a good rises, indifference curve analysis indicates that the consumer will move to a

• A) higher indifference curve with lower utility.
• B) lower indifference curve with higher utility.
• C) higher indifference curve with higher utility.
• D) lower indifference curve with lower utility.

---

Definitions:

Pigeonholing

The practice of classifying or categorizing people or things into oversimplified and rigid categories, ignoring individual differences.

Psychoanalyzing

A method in psychology which involves exploring the unconscious mind to understand and treat psychological disorders, based on theories developed by Sigmund Freud.

Statistically Analyzing

The application of statistical methods and techniques to analyze data and draw conclusions based on data patterns and relationships.

Narcissism

A personality trait that, in the normal range, is associated with high self-regard and a pattern of extraverted and confident behavior that can make an excellent first impression but become annoying in the long run. At the extreme, this trait can be characterized as a personality disorder.