Increases in product prices shift the consumer's:

A) budget line to the right.
B) budget line to the left.
C) indifference curves to the left.
D) indifference curves to the right.

Question

Increases in product prices shift the consumer's:A)  budget line to the right.B)  budget line to the left.C)  indifference curves to the left.D)  indifference curves to the right.

Onuchukwu Ekenedilinna · Accepted Answer

Final Answer : B, Explanation :  An increase in product prices shifts the budget line to the left, as it reduces the purchasing power of consumers. This means that consumers can afford less of the products they desire at their original prices, resulting in a decrease in consumption possibilities.

Increases in product prices shift the consumer's:

A) budget line to the right.
B) budget line to the left.
C) indifference curves to the left.
D) indifference curves to the right.

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Learning Objectives

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