A consumer consumes only two goods if price of one good Falls the indifference curve does not shift explain why(p.84)??

Dear student,
If price of one good falls then the indifference curve does not shifts because the indifference curve reflects the preferences of the consumer irrespective of the prices. It is rather the budget line which will get affected by such a change in the prices of goods.
 

  • 2
What are you looking for?