# If the price of one of the products is associated with indifference curves increase, all else the same, what is the result?a) the individual is able to get a lower level of utilityb) the individual is able to get to about the same level of utilityc) the individual is able to get to a higher level of utilityd) prices will be lower

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If the price of one of the products is associated with indifference curves increase, all else the same, what is the result?

a) the individual is able to get a lower level of utility

b) the individual is able to get to about the same level of utility

c) the individual is able to get to a higher level of utility

d) prices will be lower

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Step 1

Answer - If the price of one of the products is associated with the indifference curves increase, all else the same, than -

a) the individual is able to get lower level of utility - Indifference curve is locus of the points showing different points showing different combinations of two goods providing equal utility.So, with if price of one good of the products is associated with indifference curves increase than utility will affect on positive way and utility will not get lower.

b) the individual is able to get to about the same level of utility - With the price of one of the products is associated with indifference curves increase than this will effect the consumer positively.Because the indifference shows the satisfaction of the consumer with different combination of goods. So, it will increase the level of the utility.

c) the individual is able to get a higher level of utility - If the price of one of the products is associated with indifference curves increase than individual is able to get higher level of utility because as indifference curve shifts upward than the consumer will get higher level of utility.

Step 2

d ) prices will be lower - The price will not be affected if price of one of the products is associa...

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