In an Indifference Curve/budget Line Diagram,generally When the Price of a Good

question 119

Multiple Choice

In an indifference curve/budget line diagram,generally when the price of a good increases,the consumer purchases

• A) less of the good and moves to a lower indifference curve.
• B) less of the good and moves to a higher indifference curve.
• C) more of the good and moves to a higher indifference curve.
• D) more of the good and moves to a lower indifference curve.
• E) the same amount of the good and moves to a higher indifference curve.

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Definitions:

Functional Risk

The potential for a product or service to fail to perform its intended function, leading to dissatisfaction or harm.

Physical Risk

The potential for bodily harm or health hazards that individuals may face in various activities or environments.

Social Risk

Social risk in consumer behavior refers to the potential for a product or service to adversely affect the user's social standing, image, or relationships with others.

Psychological Risk

The potential for a product or service to evoke negative emotional states or threaten one's self-concept.