When the Price of a Good Changes,the Total Effect of the Price

question 32

Multiple Choice

When the price of a good changes,the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased

• A)on the old budget line and the new budget line.
• B)on the original indifference curve when faced with the original prices and when faced with the new prices.
• C)on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve.
• D)on the new indifference curve.

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