If the price of a product increases, then
A. the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
B. the budget line shifts inward 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 rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
Answer: D
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Indicate whether the statement is true or false
In the above figure, if price is equal to P4, the firm will
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