As the Price of a Good Rises,the Consumer Will Experience

question 95

Multiple Choice

As the price of a good rises,the consumer will experience

• A)a desire to consume a different bundle.
• B)a decrease in utility.
• C)a southwesterly movement on the indifference map.
• D)All of the above.

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Definitions:

Equilibrium

The condition that exists when quantity supplied and quantity demanded are equal. At equilibrium, there is no tendency for price to change.

Incentive

A factor, often financial, that motivates individuals or organizations to perform certain actions or behave in a desired way.

Long Run

A period in economics sufficient for all adjustments to be made, including physical capital and not just prices.

Licenses

Official permits to own or do something, typically issued by a government authority.