Asked by Anny karoline souza lucena on May 12, 2024

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A decrease in the prices of two products that a consumer buys out of a constant budget would cause the consumer's

A) indifference curves to shift outward from the origin.
B) indifference curves to shift inward to the origin.
C) budget line to shift outward from the origin.
D) budget line to shift inward to the origin.

Prices of Products

The cost at which goods or services are offered for sale to consumers.

Consumer's Budget

The total amount of income available to an individual or household for spending and saving after taxes have been accounted for.

Indifference Curves

Visual diagrams in microeconomics that display the mix of two products which provide the same level of pleasure and usefulness to a purchaser.

  • Evaluate how changes in pricing affect consumer decision-making and fiscal boundaries.
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MG
Matthew GrattonMay 14, 2024
Final Answer :
C
Explanation :
When the prices of products decrease, the consumer can afford more of these products with the same budget, causing the budget line to shift outward from the origin. This represents an increase in the consumer's purchasing power.