When the Price of a Good Increases, All Else Held

question 66

Multiple Choice

When the price of a good increases, all else held equal, which of the following does not occur?

• A)The slope of the budget line changes.
• B)The consumer's indifference curves shift.
• C)Utility decreases.
• D)Quantity demanded decreases.
• E)The budget line shifts inward along that good's axis.

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Definitions:

Fixed Assets

Long-term tangible assets used in the operation of a business that are not expected to be converted into cash within a year.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories (assets, liabilities, and equity) is represented as a proportion of the total account.

Profitability Analysis

The process of evaluating the ability of a business to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Cost Of Goods Sold

The cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including material and labor costs.