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Question
If the price of a product increases, then
A) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
B) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
C) the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
D) the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.
Answer
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