The figure illustrates the effect of a decrease in the price of good B on the utility-maximizing combinations of goods A and B. Which of the following is true? O None of the other answers is correct. Good B is either a normal or a Giffen good. The demand for good B is elastic. Goods A and B are substitutes.

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A: Answer: (c). ATC=TCqATC=12×q2+5,000qATC=12q+5,000qATC=q2+5,000q Graphical presentation of ATC and MC...