The price-consumption path is the curve
A) representing how consumption will vary when one price changes but all other prices and the consumer's income remain constant
B) connecting optimal consumption bundles that shows how a consumer changes the quantity demanded of specified goods as income changes and prices remain constant
C) that represents the relationship between the quantity of good demanded by a consumer and the price of that good as the price varies

Question

Quizplus · Accepted Answer

The price-consumption path represents how consumption varies when the price of one good changes while all other prices and the consumer's income remain constant. It traces the consumer's optimal choices of goods as the price of one good changes.

The Price-Consumption Path Is the Curve