Author Question: In an indifference curve/budget line diagram, generally when the price of a good increases, the ... (Read 53 times)

hubes95 · **on:** Jun 29, 2018

In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ________ of the good and moves to a ________ indifference curve.

A) less; lower
B) less; higher
C) more; lower
D) more; higher

Question 2

In a perfectly competitive market that is in long-run equilibrium, which of the following will NOT occur?

A) Firms make only zero economic profit.
B) Firms' owners earn a normal profit.
C) The price equals the minimum average total cost.
D) Entrepreneurs want to enter this industry.