If the price of a good rises, indifference curve analysis indicates that the consumer will move to a
A) higher indifference curve with lower utility.
B) lower indifference curve with higher utility.
C) higher indifference curve with higher utility.
D) lower indifference curve with lower utility.

Question

Quizplus · Accepted Answer

When the price of a good rises, the consumer's purchasing power decreases, leading them to move to a lower indifference curve, which represents a lower level of utility.

If the Price of a Good Rises, Indifference Curve Analysis