When demand falls, the price charged by a monopoly under an average-cost pricing policy will fall.

Refer to the scenario above. Which of the following is likely to happen if Mike confesses while Rita does not confess?

A) Both of them will be let free. B) Mike will be let free while Rita will be suspended. C) 10 points will be deducted from their respective scores. D) 10 points will be deducted from Rita's score while Mike will be suspended.

If the price of the good measured along the vertical axis increases without a change in the price of the good measured along the horizontal axis, the consumer's budget constraint:

A) pivots rightward without a change in the intercept on the horizontal axis. B) pivots leftward without a change in the intercept on the horizontal axis. C) shifts to the right. D) shifts to the left.