Indifference curves shift or rotate
A) only when income changes.
B) only when prices change.
C) when either income or prices change.
D) with none of the above because changes in income and prices do not shift indifference curves.
Question 2
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of 5.
B) producing 8 units and charging a price of 15.
C) producing 16 units and charging a price of 10.
D) producing 20 units and charging a price of 25.
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