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12 November, 14:09

Bill spends his money on flowers and cookies so as to maximize his total utility. Both flowers and cookies start off costing $2 each. At that price, Bill buys three flowers and two cookies. When the price of flowers is lowered to $1, Bill buys eight flowers and one cookie. which of the followiung statement regarding price decrease is not true? A. Bill's budget linw shifted outwardB. Bill's demand curve shifted to right

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  1. 12 November, 15:22
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    B) Bill's demand curve shifted to right

    Explanation:

    When a demand curve shifts to the right, it means that the total quantity demanded will increase at every price level. This rightward shift is generally caused by an increase in income, an increase in the price of a substitute good or a decrease in the price of complementary good.

    When the price of a good increases, the quantity demanded will increase but following the supply curve.
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